Gold prices have maintained a steady state at the 38% fib retracement level. That fib is drawn from the low of 12/15/2015 @ 1056 to the high of the year at 1383. Steaming from the big selloff two weeks ago, the has had time to stabilize and may be ready to move above the 20 line. Could this be the beginning of the next cycle up? We definitely need to be patient and wait for confirmation, especially as the is still moving down on the weekly chart (see pic below).
It's interesting to note that last week was extremely for the US Dollar . Even though the dollar was moving strongly to the upside, Gold was able to hold it's position and did not sell off in response. This could mean that Gold has a lot of underlying strength. Gold will usually decline in the face of a strong dollar. I've added a chart below that shows the relationship between Gold and the US Dollar .
Let's watch for confirmation to the upside. Hopefully we'll have a clearer picture in the next few days.
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Weekly Gold Chart:
Gold vs. US Dollar: