Gold continues to gain traction, hits fresh two-week highs
|Gold continued gaining traction for the fourth consecutive session and climbed to a two-week high level near $1235 at the start of new trading week.
Last week's less hawkish Fed monetary policy outlook, forecasting two more rate-hikes by the end of this year, triggered a broad based US Dollar sell-off and provided a strong boost to dollar-denominated commodities - like gold. Adding to this, a sharp retracement in the US treasury bond yields further collaborated the strong bid tone surrounding the non-yielding yellow metal.
The Fed monetary policy outlook would remain an exclusive driver of the metal's near-term trajectory. Hence, market participants would remain focused on a slew of Fedspeaks, including the Fed Chair Janet Yellen, for fresh clues over the timing of next Fed rate-hike action, which would eventually provide fresh impetus for the metal's near-term trajectory.
Technical levels to watch
A follow through momentum beyond $1236 level is likely to accelerate the up-move beyond $1240 intermediate resistance towards its next major hurdle near $1250 region.
On the downside, retracement below $1230 level now seems to find support near $1225 region, below which the commodity is likely to slide further towards $1217-15 support.
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