14.09.202119:08 Forex Analysis & Reviews: Gold edges higher as dollar index drops

Gold rallied after the Dollar Index has resumed its downside movement. Personally, I'm using a correlation between DXY and XAU/USD. When the Dollar Index increases, I'm looking for shorts in Gold, and while the index drops, the price of gold could increase.

Gold is used as a hedge for inflation. The US inflation figures have come in worse than expected. Still, the yellow metal increase as the DXY has reached a new low today. XAU/USD stands at the 1,804 level and is fighting hard to climb higher. It has found strong support on a dynamic downside obstacle.

XAU/USD Turned To The Upside!

Exchange Rates 14.09.2021 analysis

XAU/USD registered only false breakdowns through the first warning line (WL1) of a major descending pitchfork. Now it's traded above 1,800.09 weekly pivot point. Stabilizing above this level after registering a false breakdown with great separation below WL1 could indicate more gains.

1,823 - 1,834 zone represents a resistance area. It remains to see how it will react in the coming hours. Right now is pressuring 1,803.92 former high. Closing above it is seen as a bullish signal.


Gold could resume its upside journey if the rate closes and stabilizes above 1,803.92. Still, only a new higher high, climbing above 1,834.04 could really validate a larger growth towards the 1,900 psychological level.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2021
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Can't speak right now?
Ask your question in the chat.