Gold testing the 200-day moving average

In the early morning trade, October gold is pretty much unchanged and off its high today of $1619.1. The yellow one has over the last two trading sessions rallied and enjoyed the comments from ECB leadership late last week from Draghi. Also, some analysts have brought up new ideas that the Fed is more likely to act to support/stimulate the US economy in their upcoming September meeting.

If October gold can break above last week’s high of $1,630.6 a troy ounce, then I believe we can finally test the 200-day moving average which is currently resting at $1663.0 an ounce. Since the 14 period RSI is strongly pointing up and currently at 65.85 and will break 70.0 if it breaks last week’s high, I believe that $1700.0 would not be out of the question in the short-term.