FX_IDC:XAUUSD GOLD / US DOLLAR
Gold rose to a high of $1223 in Europe before trimming gains and falling back to $1215 levels in early US session.
- Upward revision of US GDP is helping USD strengthen, although the price divergence on the hourly chart is still intact. Moreover, divergence would be negated only if prices see a hourly closing below $1211.48 levels.
- However, bulls need a convincing break above hourly 50-MA, which has acted as a strong resistance on multiple occasions. Take note of the blue circles, which show repeated failure to take out/sustain above hourly 50-MA levels.
- The outlook is at a risk of hawkish comments from Fed's Yellen.