In the early morning trade, August gold has extended its rally another $5 overnight and is currently trading at $1,250.0 a troy ounce. The continued downside of the US dollar has yet again provided gold a move and rally higher. Yesterday’s rally in gold was even more impressive in the wake of the ECB expressing concerns over low inflation readings. However, the benefit for gold in the long run would be that both European and US rate hikes would have to be pushed back because of lingering deflation concerns.
If we take a quick look at the daily august gold chart, you’ll clearly see that gold broke out above a downtrend back on July 14. Also, it is back above all the major moving averages and now is prone to rally up to $1,300.0 a troy ounce and with the fundamentals to support this short-term rally. Below is a daily August gold chart with the levels above.
Aug ’17 Gold Daily Chart