Gold keeps rising and hits fresh weekly highs near $1340

As USD slide continues, gold extends gains.
XAU/USD up 1.35%, having best day since February 14.

Matías Salord FXStreet

Gold continued to rise during the American session and hit fresh weekly highs. The value of the ounce approached $1340 supported by a slide of the US dollar and risk appetite.

The price peaked at $1338.55, the highest level since February 26. It was holding near the top with a strong bullish tone.

The metal continues with the up move that started on Thursday when it bottomed at $1302. Since then climbed more than $30. Yesterday the rally took a pause and resumed today on the back of a decline of the USD. US Dollar Index futures dropped from near 89.90 to 89.42, the lowest in a week.

The surge in gold is taking place despite talks between North and South Korea that contribute to investor’s risk appetite. Also, the yellow metal showed resilience by keeping gains when US bond yields hit daily highs.

Technical levels

To the upside, the key immediate resistance is seen around the $1340 area. Above the resistances might lie at $1344 and the $1350 region. On the flip side, support could be seen at $1334, $1331 and $1321.

Another relevant technical level is the 20-day moving average that stands at $1328. Gold heads for the first close above that line since mid-February, offering another bullish signal.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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