Gold has increased as much as $1,983.10 today registering a new historical high. The price has validated a further growth in the short term, so the $2,000 psychological level is seen as the next upside target.
The USD's continuous drop versus the other major currencies helps the yellow metal to jump higher and to reach new highs. The price is facing tough dynamic resistance, a valid breakout above this level will activate further upside movement.
The gold price is trapped between the first warning line (WL1) and the 250% Fibonacci line, an upside breakout could bring another buying opportunity, even if the rate is traded at historical highs.
Gold is traded above the R2 ($1,972) level and it could accelerate its rally if closes above this static resistance. The next upside targets are represented by the $2,000 level and by the second warning line.
Trading TipsBuy - if the gold price will close above $1,983 today's high, set your target at the second warning line (WL2). A breakout above the warning line (WL2) will signal an increase towards the R3 $2,037 level.
Sell - we could have a short opportunity, signal, if the rate will register another false breakout above the R2 and above the 250% line and if it will drop and close, stabilize, below the warning line (WL1) and below the R1 ($1,936) level. This scenario could lead the rate down to the $1,900 level.