FXstreet.com (Barcelona) - Gold continues rising and breaks above past week high of U$ 952 as risk aversion prompted investors to buy gold and bullion-backed exchange-traded funds as a safe haven. Spot bullion prices crossed tough resistance 930, spiking to a peak of 963.05 in early London session.
Despite gold and dollar usually have an opposite reaction, we have seen this kind of decouple many times in the past. Uncertain resistances are at the very close 968 zone, followed by 989,50 and the past year high just above 1034. Supports levels are located at 939, 899, and 881 areas.
Gold has been rallying continuously within a steep upward trending channel from Nov 13 low at $700. On the currency area the USD/CHF has followed a similar trend from 1.037 on December 29 to 1.1675 high so far, the parallelism between these two pairs has to be taken in account on a risk aversion context such as the current, as the USD/CHF has been traditionally related to gold.