The price has increased significantly today and has jumped much above the 1253.19 last week high, has climbed as much as 1261.03a and looks determined to hit new highs in the coming days as the US dollar is under massive selling pressure versus its major rivals.

Gold is taking advantage of the weaker dollar and should approach the 1280 psychological level, we have an important resistance area  around this level, so a further increase is expected. Price surged today as the USDX has plunged aggressively in the first part of the day, the index has opened with a gap down in the Asian session and has resumed the last week’s bearish movement. The USDX has ignored the 99.55, 99.24, 99.12 and the 99.00 static support levels, but has stopped by the 98.86 level.

The Gold has decreased a little in the lst hours as the USDX has managed to rebound and to recover after the morning impressive drop, the index is located right above the 99.20 level, but remains under pressure, we could see another leg higher only if will stabilize above the 99.12 static support.

The price has increased and has managed to jump above the 38.2% retracement level, right now is very close to reach the 1263.87 previous high, I’ve said in my previous analysis that he could still be attracted by the major confluence area formed at the intersection between the upper median line (UML) of the major descending pitchfork with the lower median line (lml) of the major ascending pitchfork and also with the 38.2% retracement level.

Remains to see what will happen when will touch this area, a valid breakout through this confluence area will change drastically the sentiment, we’ll have a reversal and the rate will try to approach the 1375 major static support. However a rejection from the confluence area will attract the bears again, which will drive the rate down again, the Gold is still under pressure as long as is trapped inside the major descending pitchfork’s body (below the UML).