Monday, March 26, 2018

Gold crosses strong resistance level of $1355 as dollar struggles to hold 89 handle on index

Gold prices have continued to move higher on March 26 as the trend which started following the Fed's rate hike announcement shows little signs of slowing down.

One day prior to last week's Wednesday FOMC meeting and policy announcements, gold had fallen to a five week low of $1306.  But since that time it has gained $50 over the last four trading days to its current level of $1355.

In the meantime, the dollar has fallen approximately 140 bps over the past four trading days from its high of over 90.40 on Wednesday, down now to its current level of just over 89 on the dollar index.

While the stock markets have recovered a little bit from their Thursday and Friday bloodbaths, they still remain more than 10% below their all-time highs seen in January when the Dow reached a level of 26,616.  And this, coupled with the dollar not appearing to be a safe haven for cash, bodes well for gold as it looks to once again attempt to break through its most difficult resistance level of $1378.


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