The gold price has managed to rebound above $1,520, despite the strength of the US Dollar. Investors’ hunger for bullion is stronger than the fear of a strong greenback and markets are not having any trouble finding gold buyers. Investors are betting on dovish central banks not only in the next few months, but also in the medium to long term. In other words, markets do not expect Christine Lagarde to be able to deviate too far from Mario Draghi’s monetary policy, while in the US, rising rates seems quite a long way off as well.
From a technical point of view, the first resistance area is placed at $1,530 to $1,532, a breakthrough these levels could open space for further rallies up to $1,555.
