Gold edges higher and was almost to reach the $1300 per ounce, but was stopped by the 1292 level. Is trading in the green as the dollar has started a minor correction versus its rivals. The yellow metal will climb much higher in the upcoming period if the dollar index will slide further.

Gold reached a dynamic resistance today, has climbed above it, but remains to see if this will be a valid breakout or not. The greenback could lose significant ground versus its rivals if the USDX will close somewhere below the 93.30 level.

Technically, the USDX is expected to drop further after the false breakout above the 93.81 static resistance, it could approach the 92.49 horizontal support and could still develop an Inverse Head and Shoulders pattern on the Daily chart.

The rate increased also because the Kiwi and Aussie have increased versus the greenback today, the AUD/USD rallied and erased the yesterday’s losses also because the Australian NAB Business Confidence increased from 5 to 7 points.

The Gold has managed to jump above the warning line (WL1) of the major ascending pitchfork and much above the 38.2% retracement level. A valid breakout above the WL1 will confirm a further increase an a potential breakout above the warning line (WL1) of the descending pitchfork. However, a false breakout above the ascending warning line (WL1) will signal a further correction in the upcoming weeks.

Silver Broader Increase Expected

The Silver move somehow sideways on the short term, but it could start an important bullish momentum after the failure to reach and retest the median line (ml) of the minor descending pitchfork and after the failure to approach the first warning line (wl1) of the ascending pitchfork.

It could be attracted by the confluence area formed at the intersection between the lower median line (lml) of the ascending pitchfork with the upper median line (uml) of the descending pitchfork. Technically, it was expected to climb much higher after the breakout from the Falling Wedge pattern.