The price of gold moved to a new 2019 high and in the processs is trading at the highest level since May 2013. The precious metal will now have traders targeting a 50% retracement of the move down from the 2011 high price of $1921.17 at the $1483.83 level (see chart below).
A lower dollar tends to strenghten the price of gold.
The US dollar index (DXY) is dipping back below the 200 day MA at the 96.806 level. The price is currently at 96.768. The June low reached to 95.84. The low for the year was on January 10 and 95.029. Both are targets on more downside momentum. The DXY tested its 200 day moving average in January February and March. Each time, the price bounced. At the end of June, the price fell below that 200 day moving average but rebounded into July.
Now the index is trying to make another crack to the downside.
Trader Aleksandar Kumanov