• Persistent USD weakness helps regain traction.
• Weaker US bond yields provide an additional boost.
• Bullish momentum could extend towards 200-DMA hurdle.
Gold regained some fresh traction on Wednesday and moved back closer to 2-week tops during the early European session.
After yesterday's brief pause, the precious metal resumed with its recent recovery move from near 5-month lows and was being further supported by persistent greenback selling bias. In fact, the key US Dollar Index struggled near the 93.00 handle, despite the latest optimism over the long-awaited tax cut legislation, and underpinned demand for dollar-denominated commodities - like gold.
Adding to this, a mildly softer tone around the US Treasury bond yields provided an additional boost to the non-yielding commodity and further collaborated to the yellow metal's up-move to the $1265 level.
Meanwhile, a subdued trading action around European equity markets did little to influence the precious metal's safe-haven appeal, with the USD/US bond yield dynamics acting as key determinants of the bullish momentum.
With the only scheduled release of existing home sales, today's US economic docket lacks any major market data. Hence, a follow-through momentum, towards retesting the very important 200-day SMA hurdle, now seems a distinct possibility.
Technical levels to watch
Immediate resistance remains near the $1269 region (200-DMA), above which the commodity seems to head towards $1274-76 supply zone. On the flip side, $1261-60 area now becomes an immediate support to defend and is followed by support near $1255 and $1252 horizontal level.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD snaps its four-day losing streak, hovers around 1.0650, focus on German IFO data

The EUR/USD pair snaps its four-day losing streak during the early Asian session on Monday. Market participants will digest the outcome of the Federal Reserve (Fed) meeting last week and await the US Core Personal Consumption Expenditure (PCE) index data due on Thursday.
GBP/USD heads for lowest weekly close since March

GBP/USD is holding firm with weekly losses, unable to move away from 1.2200. The Pound is among the worst performers of the week after the Bank of England's decision to keep interest rates unchanged.
Gold consolidates above $1,920 ass US yields edge lower

Gold price clings to small recovery gains above $1,920 following Thursday's sharp decline. Following the mixed September PMI data from the US, the benchmark 10-year US Treasury bond yield is down nearly 1% on the day at around 4.45%, allowing XAU/USD to stay in positive territory.
Worldcoin Price Prediction: Is WLD done with uptrend after 77% rally?

Worldcoin price has paused its uptrend as it currently trades at $1.57. This move comes after the altcoin rallied a whopping 77% in just three days, between September 13 and 16. As WLD hovers aimlessly, investors need to be patient to catch the next volatile move.
Week ahead – US core PCE and Eurozone flash CPIs eyed after rate pause signals [Video]
![Week ahead – US core PCE and Eurozone flash CPIs eyed after rate pause signals [Video]](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Prices/CPI/consumer-price-index-gm500080630-80587217_XtraSmall.jpg)
PCE inflation to grab attention on Friday as Fed signals higher for longer. But markets might be more worried about a government shutdown. Eurozone flash CPIs will also be the in the spotlight on Friday. Chinese PMIs to be watched for recovery signs.