The price of GOLD in relation to the US dollar increased last week, which led to the closure on Friday over the upper limit of the range falling within level 1212. However, before that happened, last week the bottom of the consolidation was tested close to 1189.00.
Along with last week’s breakout, volatility returned, which was lacking during several weeks of consolidation. In addition, the direction of the breakout indicates a potential for growth, at least in the short term.
As can be seen in the weekly chart below, the quotes during today’s session have already managed to set a new maximum. The nearest resistance can now be found close to the level of 1245.00, and another key horizontal level is an area within 1260.
The bullish prospect for gold is maintained, while quotes are above the area of previous resistance at 1212, which now acts as a support. Additionally, dynamic support can be provided here by the average EMA 10/20 channel from the daily chart.