There is a clear inverse correlation between Gold and DXY index. Gold prices are on the rise while DXY index is weakening. Will the recovery last long?
29 June, ADS Securities – Following two consecutive bearish sessions, the precious metal rebounded in the prior session to finish at $1249.10, after making a high at $1255.70, supported by a weaker US Dollar.
Inverse correlation between Gold and DXY index
As visible on the 1H chart, the Gold is trading with a positive showing, reflecting at the presence of bullish momentum in the coming session. In addition, the MACD indicator has witnessed a signal line crossover from below, further affirming the above stance.
The key technical barrier is positioned at the $1254 level, followed by the $1257 and $1260 levels. A sustained break above the latter might trigger a further acceleration to the upside. On the losing side, key near-term support is positioned at the $1250 level, where EMA 55 is trading, a move back below which might lead to bearish pressure in the yellow metal, paving way for the $1248 and $1245 levels.
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