Gold takes off again

Gold had been stuck around the 200 day EMA (blue line), which is currently at the 1230 level. But the drop on the Dollar has helped the precious metal gain some strength and takes off to make a high around the 1243 level. We must keep in mind that the Dollar and gold have an inverse correlation and that is why when the Dollar drops, gold rallies. After the double bottom formation that the price of gold made around the 1200 level, the commodity has gone back to its midterm bullish trend, but in order for that trend to stay in place, the price must break above the high that it made at the 1264 level. In case of a pullback, the same 200 day EMA may act as a support.