Gold rallied strongly yesterday to a high of $955, taking out the $945 resistance level in the process. Overhead resistance now stands at $967.
The US dollar weakened significantly against all the major currencies as the negative sentiment towards sovereign credit shifted from the UK to the US in the wake of the S&P report yesterday. S&P have put the UK on negative watch from a credit ratings perspective. The expectation that the US could possibly lose its AAA credit rating, triggered a sell-off in US bonds and the dollar simultaneously.