Gold (XAU/USD) bulls remained unstoppable, as the yellow metal rallied nearly $15 in a matter of 15 minutes. The spot refreshed the highest levels in nine years at $1866.90.
The persistent weakness seen in the US dollar across the board continued to bode well for gold, as markets cheered additional US stimulus talks and EU fiscal deal.
Traders remain hopeful that the massive global economic stimulus deployed will help stage a quicker rebound. These expectations continue to diminish the safe-haven bids for the US dollar.
Analysts at TD Securities noted: “The US dollar has dropped as the world is looking a little bit better. Interest rates have fallen across the yield curve and that again is another factor helping gold.”
Further, the bullish momentum gathered steam after stops got triggered on a break above the psychological $1850 level. The bright metal also tracks the rally in silver, which reached fresh seven-year highs beyond the $22 mark.
The next stop for the bulls seems to be the September 2011 high at $1920 (record high). At the press time, the metal trades around $1860, up 1% on a daily basis.
Gold Chart
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Gold Technical levels
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