Gold price rallied in the last few hours and jumped above the 1344 previous highs. Is strongly bullish and seems poised to reach new peaks on the short term as the USD goes down aggressively. The yellow metal increased as the USDX has reached another hit from the United States economy.  The dollar depreciated also after the European Central Bank decided to maintain the monetary policy unchanged. The ECB left the Minimum Bid Rate steady at the 0.00% historical minimum, announcing that will take action if needed in the upcoming period.

Gold decreased a little in the first part of the day as the Aussie has dropped on the worse Australian data. The Retail Sales have increased only by 0.0% in July, less versus the 0.2% estimate and compared to the 0.2% growth in the former reading period, while the Trade Balance dropped unexpectedly lower, from 0.89B to 0.46B, even if the traders have expected to see an increase to 0.93B. The AIG Construction Index dropped from 60.5 to 55.3 points.

The Gold increased significantly and touched the 1348 static resistance. It is strongly bullish on the daily chart and should reach and retest also the lower median line (LML) of the major ascending pitchfork, where he could find strong resistance.

Was expected to climb higher after the impressive breakout above the warning line (WL1) of the descending pitchfork and after the failure to close the former gap up.

The major upside target remains at the $1375 per ounce, will hit this if the USDX slides further and if the global tension escalates in the upcoming period. Gold could increase further as the Aussie and Kiwi could increase further versus the greenback.

I’ve added the H4 chart to show you better the price action. Gold has finally managed to breakout from the ascending channel’s body, has retested the upside line of the ascending pattern and now should reach fresh new highs. Personally I believe that only the fundamental factors could turn it to the downside again.