However, the move higher is not particularly convincing and the rally continues to meander higher in an overlapping, corrective manner. With resistance above at 1414 (the 20 DMA and 22 May spike high) and 1420, we do not expect a major rally to unfold here.
Should equities correct sharply and the dollar continue to fall, we may see a strong rally develop in gold, though this is not our most likely scenario.
The dollar has struggled to maintain the 84 level and sold off sharply yesterday, along with oil and equities. It is rather odd to see all three rally and fall together, trading inversely to gold and we do not expect this position to continue for long.
It is clear that gold is influenced strongly by the dollar and equities at the moment, though we would expect oil to be moving in tandem with gold rather than the dollar.
Today's video for subscribers looks at the recent trading in more detail and the possible impact of the upcoming Non Farm Payrolls number, released on 7th June.