Technical Analysis Gold Price Forecast Gold Rallies as U.S. Dollar Slumps - 25 January 2018 Gold Rallies as U.S. Dollar Slumps - 25 January 2018 Thursday, 25 January 2018 8:09 Share 0 Tweet 0 Pin it 0 +1 Gold prices rose $16.98 on Wednesday, reaching the highest level since August 5, as the dollar continued to fall. XAU/USD was able to cleanly break through the resistance at $1344 after existing home sales data came out softer than expected. Some upbeat economic data out of the EU and comments from U.S. Treasury Secretary Steven Mnuchin, who said that a weaker U.S. dollar is beneficial for the economy also provided support to the precious metal. Not surprisingly, breaching the critical barrier at 1344 lured chart based buyers and pushed prices higher. From a chart perspective, trading above the Ichimoku cloud, along with the positively aligned Tenkan-sen (nine-period moving average, red line) - Kijun-sen (twenty six-period moving average, green line), suggest that the bulls have momentum on their side. It looks like the market will test the resistance at 1365 today. The bulls will have to push through 1365 to march towards 1375, which is the next solid resistance on the charts. If the bulls are unable to sustain a break above 1365, it is likely that we will head back to test the support in the 1358/5 zone. A break down below 1205, would open up the risk of a retreat to 1350.80-1350. The bears have to produce a daily close below 1350 to proceed to 1344. Currency Pairs Gold Alp Kocak Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.