Price rallied aggressively and reached new highs in the European trading session. Gold opened with a gap up in the morning and resumed the upside momentum. Is strongly bullish on the short term and could hit fresh new high in the upcoming period.

The yellow metal has lost altitude in the second part of the day and now is trading in the red, could come down to try to close to morning gap. Technically is expected to climb much higher in the upcoming period because is located in the green zone. Personally, I believe that only the fundamental factors could turn it to the downside again.

I’ve added the USDX’s chart to show you what’s happening with the USD and why the Gold edged higher. The index has slipped lower after the retest of the warning line (wl1) of the minor descending pitchfork. Has come back down to retest the 92.49 critical support, could start a larger increase if will stay above this level and if will make a valid breakout above the warning line (wl1).

Seems like the behavior will change on the short term (higher lows), could come even to retest the lower median line (lml) of the minor blue ascending pitchfork before will really start another leg higher.

Price climbed as much as $1339 per ounce today, where has found temporary resistance again. Is trading in the red and could decrease more because could try to close the gap up. Technically is expected to climb much higher in the upcoming period. The next upside target will be at the 1348 static resistance, could be attracted by the lower median line (LML) as well (this is acting as a magnet) as well.

The perspective is bullish on the daily chart, we don’t have any reversal sign, so we can’t talk about a corrective phase at this moment. Only a failure to reach and retest the mentioned near term resistance levels will signal a drop towards the 150% Fibonacci line (ascending dotted line).