Gold continues to rally, moving above former resistance

What followed was over a month of strong price advances that unfolded as a stairstep pattern in which gold prices would advance and then consolidate trading sideways at that new higher price level.

On the chart that we have included in this article, we have added a basic Fibonacci retracement which begins at the record high of $2080 down to the double bottom at $1675.

On May 3, prices began to move in almost a parabolic manner in which we saw gold prices rise of $1775 to current pricing at $1836.90 in just under one week.

On closer inspection, dollar strength resulted in a decline of $0.55, with traders bidding the precious metal up by $6.35, resulting in a net gain today of $5.80 per ounce.

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