Gold hits fresh 4-week tops on USD selling, $ 1300 closer

Dhwani Mehta FXStreet

Gold futures on Comex extends its winning streak into a fifth day today, as broad-based USD sell-off gathers pace amid thin trading conditions.

Gold: Will its take-out $ 1300 mark?

Gold prices reversed more-than 75% of the latest decline to five-month lows of $ 1238 levels, as the bulls fight back control in a bid to regain the $ 1300 barrier, with a generalized selling in the greenback offering the much-needed impetus to the yellow metal.

Heading into the New Year, markets seek safety in the ultimate safe-haven, gold, as North Korean nuke threats, EU political instability and Fed rate hike expectations remain the key risks going forward.

Moreover, the ongoing strength in gold prices can be also attributed to repositioning ahead of the yearly close, with markets taking profits off the table after the recent slump to multi-month lows.

In the day ahead, the US macro news will have a significant impact on the USD-sensitive gold.

Gold Technical Levels

Rick Ackerman, Editor and Publisher Rick’s Picks, writes: “February Gold has now climbed nearly $50 since turning on December 12 from within an inch of a 1237.40 correction target I’d flagged well in advance. The futures were trading a few points below 1290 on Tuesday, but they will need to leap past 1321.00 to imply that buyers are serious. That would generate a bullish impulse leg on the DAILY chart. It would also exceed the 1314.00 midpoint resistance of a pattern projecting as high as 1389.60.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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