Gold breaks $635

The previous post was made 20 days ago which the gold price is $627, and gold price has been boring at this level until today it rises $9 and breaks $635.

USD has been weak these days, EUR/USD just broke 1.3 and is now 1.3079, which may indicate a further drop of the dollars.

Gold will benefit from the dollar drop. Hopefully it will enter another trading range of $635 - $660. Lets see if $635 shows a good support.

Boring months for the gold, now at $627

Historical statistics shows that after a first phase of bull run, gold has gone through one and a half year of adjustment period before its last rising phase at 1980.

Gold has dropped back since mid May of 2006. 6 months has finished and the lowest had been around $550 and then struggling between $580 - $660. The 3 previous trading ranges being
$580 - $605
$605 - $635
$635 - $660

No break through is expected at the moment. Otherwise it is likely that the last bull has started. Then will aim for $735 and then the record high $850.