Last night gold price went up due to the rise of risk aversion mood, even though DXY raised and reached 96. Once again we have seen that 1220 is the market's psychological level that is hard to break through. Even if the price is still within the descending tunnel, the macro environment is actually beneficial to the upside risk of gold (stock market's panic, Italy's budget issue, potential conflict between the western countries and Saudi Arabia, etc.).
For day trading, pay special attention to support level 1225 and see if it holds. My chart has shown two possible movements:
1. red arrows: if 1225 hold strong, gold price is likely to test the new high at 1235.
2. blue arrows: if 1225 does not hold, take a short position to 1220.
For day trading, pay special attention to support level 1225 and see if it holds. My chart has shown two possible movements:
1. red arrows: if 1225 hold strong, gold price is likely to test the new high at 1235.
2. blue arrows: if 1225 does not hold, take a short position to 1220.