NEW YORK (TheStreet) -- As gold continues to find its groove, Phil Streible, senior commodities broker at RJO Futures, tells TheStreet's Joe Deaux why it's moving and where it might be headed.
Because of a weaker U.S. dollar, Streible says gold is getting higher bids, now up over $1,300 per ounce.
This level was previously seen as strong resistance, where the yellow metal failed miserably a couple of weeks ago as it approached the mark.
trading near $1,330 per ounce, the next level to watch would be $1,350 according to Streible, which is gold's 50-day moving average.
So what's propelling prices higher?
Streible pointed to the global economy gaining steam, citing stronger housing and auto sales.
Also, currencies such as the Australian dollar and the New Zealand dollar have been weak this year. But the currencies have rebounded, and that has helped to drive down the dollar, which coincides with higher gold prices.
Streible concluded that should gold have multiple closes above the 50-day moving average, $1,400 should be the next upside target.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.