During the past couple of weeks, we have witnessed a steady rise in gold prices which was mainly caused by the increase in Market volatility during the quarter. Interestingly, this also came about with the seasonality trend in gold whereby historically, consumer demand increases thereby helping the rise in the price of gold.
On the other hand of the spectrum, following the initial weakness during the early months of the year, the US Dollar Index saw a steady rise with the USD getting strong and stronger.
As we know there is a strong negative correlation between gold prices and the USD. During the past weeks, we have seen the USD index trading in a range and I suspect that now it might be a very good time to position yourself short on this index.
My final target would be the 200 MA line which, more often than not, is considered as the strongest support/resistance line.