Gold Reaches New Record Highs, Dollar Sees Record Lows Again

Mark O’Byrne submits:

Gold
Gold has traded at new nominal record highs (over $1,070/oz) and is currently trading at $1.066/oz. In EUR and GBP terms, gold is trading at €715/oz and £665.90/oz respectively. Resistance currently lies at $1,070/oz with initial support at $1,050/oz and then at $1,040/oz. With oil back above $75 per barrel and at a 1 year high, and the dollar again under pressure today, gold continues to eke out gains. Gold’s record comes as the dollar (as measured on the US Dollar Index) has fallen to lows last seen in August 2008 and has breached 1.49 against the euro. The US Dollar Index has fallen to 75.51 and looks in poor shape technically with strong support not seen until down at the multi year lows at 71.0 (see chart). As long as the dollar keeps falling, gold will continue to rally in dollar terms. Should the dollar mount a rally then we shall see gold move up in euro and sterling and likely make new record highs in these currencies – as has happened throughout this gold bull market in all currencies.

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