The price for gold has fluctuated due to changes in market demand for the US Dollar not due to changes in the perceived value of gold as a commodity. Namely, at 19:00 GMT on Wednesday, the price dipped as the USD initially gained value due to the reveal that monetary stimulus would be reduced. However, as the markets realized that the remaining stimulus would still dilute the value of the USD, a surge began.
By the middle of Thursday’s European trading hours, the price had reached above the 1,785.00 level.
A continuation of the would most likely test the resistance of the December high levels at 1,791.80/1,793.40. Higher above, the 1,800.00 mark was expected to act as resistance.
Meanwhile, a decline of the commodity might find support in the 100 and 200-hour simple moving averages at 1,780.00. Below the 1,780.00 level, note the 50-hour SMA near 1,775.00.
