Gold sits at 3-week tops on increased physical demand
|Gold traded firmer on Wednesday and built onto yesterday’s gains, as the sentiment remains underpinned by rising physical demand heading into a week-long festival season in the world’s second largest consumer, India.
Gold eyes $ 1300
Currently, Comex gold futures trade +0.23% higher at 1276.50, looking for a retest of three-week highs reached a day before at $ 1277.45. Gold rallied more-than $10 yesterday after the US dollar stalled its ongoing upward rally and dropped sharply against its main peers, after having failed to sustain near eight-month peaks.
While renewed Asian demand for gold in the physical markets on account of onset of a festive season in India also contributed to the rally in the metal.
Moreover, the latest data from the IMF showed that Russia and Kazakhstan continued to boost their gold reserves in September, which also buoyed the sentiment around gold.
Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.34% to 956.83 tonnes on Tuesday from 953.56 tonnes on Monday. Next in focus remains the US dataflow for further incentives on the USD-sensitive gold.
Comex Gold Technical Levels
The metal has an immediate resistance at 1280 (daily R3) and 1288.38 (200-DMA). Meanwhile, the support stands at 1268.80 (5-DMA) below which doors could open for 1260 (round figure).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.