Gold intermarket: Gold bugs riding the bullish waves, for now unless DXY gives in

Gold is higher on the day, trading at 1246.86 at the time of writing with a high of $1,250.90 and a low of $1,236.70.

at the start of the day, Gold prices took a hit from the pressures of the strength in the dollar while US stocks rallied on the open on the back of investor sentiment post the comments from U.S. Federal Reserve officials such as Dudley suggesting a March hike is on the cards in so many words.  

However, as the session goes on, Gold was behaving out of synch with the market with the Yen on the back foot, the dollar rallying and yields up. Gold was recovering from the 200 smoothed sma on the hourly charts and charting a break through the 20 and 50 smas on the same time frames, gaining over $13.00 today so far. 

However, when looking closer, the DXY has, in fact, lead the Gold bulls on with a drop from the highs which ignited a rally in metals such as copper. However, for anything compelling, the yellow metal needs to break through and above the 50 sma on the hourly chart 1249.97 to meet the 24th Feb rally to $1,263.86 the high; for that to occur, DXY will need to drop back to below the 101 handle and target 100.80 support. 

Extra reading:

• Fed's Kaplan: Should raise rates in a 'very patient way'
• US data better than headlines are telling us? - ANZ
• Fed's Dudley puts March on the table - UOB