Gold is selling off because of the dollar index's strength

Gold prices are under pressure again and the dollar index is still surging. The reason for this is that traders think that the Fed will continue its interest rate hike cycle. The economic data released last week further strengthened the bullish sentiment for the greenback. The dollar index is pretty much tearing apart any resistance lines in its way. As for today, we do not have any particularly important economic data out for release today as the U.S. markets are closed for a national holiday.

On a 4-hour time frame, the price of gold is still very much consolidating. This consolidation zone starts from 1214 and this serves as the resistance and the lower line of this consolidation is at $1180. We need to break out of this zone and only that would send a confirmation for a new trend.

The major support zone is represented by the horizontal green line which is at 1159 and the resistance zone is shown by the red line which is at 1255.

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