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Gold Again Reaches 3 Months Highs, Still Seems Bullish

We all know that Gold always react opposite to US dollar because weakness in dollar makes dollar priced commodities cheaper to other currency holders. A series of weak US data have pressurized dollar and boosted the demand for Gold. On Monday, San Francisco Fed President John Williams said that the Bank might have to hold interest rate near current low levels for another year despite signs of improving economy. Investors turning their attention to Non-Farm Payroll data which is expected to add 210000 jobs this month.

(XAUUSD : 4 Hour Chart)

On the 4 Hour Chart, the commodity was trading sideways and broke out from the resistance at 1324.75. The 50 day SMA currently seems a key support for the pair. The resistance at 1324.75 might now act as support for the pair. 

(XAUUSD : Daily Chart)

On the Daily chart, Gold continue to signal a bullish trend as 50 day SMA just crossing above the 200 day SMA. It is currently testing the key resistance at 1331.84. Breaking this resistance will open the way for the commodity up to the next resistance levels at 1342.92 and 1350.59.