Yahoo Finance Gold On The Rise. Stronger Stocks and USD Are Not Stopping The Bullish Party.
Gold is back above the 1600 USD/oz after it managed to defend the support on the 1550 USD/oz. Gold is climbing higher despite the strong American Dollar and relatively high demand for stocks. Situation is super interesting, especially that the current movements are against the common theory. Most of the traders are taught that rising stocks and USD create a negative environment for the Gold. As You can see, theory is one thing and practice is the other. Just 3 dollars more, and XAUUSD will climb to the highest levels since the beginning of 2013. Chances for that are very high.
As we said, indexes are doing well. On Monday, both SP500 and DAX were on the all-time highs. That is a good sign. The bad sign might be that those highs could create the head od the head and shoulders pattern. On both indexes, the price is currently trying to create a right shoulder. Buyers are still safe. In both cases, the price is above the necklines. On SP500 the neckline is around 3355 points and on the DAX around 13577 points. Breakout of those two levels can brings us a mid-term correction but so far, buyers do not seem worried.
This article was originally posted on FX Empire
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