Gold bulls have reason to feel optimistic
Gold is trading in the green for a second day on Thursday, buoyed by some softness in the dollar.
Gold bulls are also likely boosted by price action on Wednesday when the yellow metal made gains even as the greenback surged to a near two-year high. This is encouraged as the relationship between the two is usually negative but a stronger dollar failed to hold it back.
Gold Daily Chart
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What’s more, the recent break below $1,280 failed to generate downward momentum and each time a new low has been made it’s quickly been bought into. That is hardly encouraging for those that hoped the breakout would bring about another wave of selling, especially against the backdrop of a stronger dollar. Hope is not entirely lost for bears though.
Gold remains below $1,280 currently despite numerous tests which should be encouraging. What all this means is that $1,260 may in fact be a far more significant support level for the yellow metal, should it be tested.
