Gold rallies to $1,290.40 high on dollar weakness ahead of FOMC minutes

Gold rallies to a high of $1,290.40.
US dollar taking a beating, down -0.47%.

Gold has extended the upside of Asia's rally from $1,279 and has now posted a high of $1,290 on a spot basis on dollar weakness with the DXY - 0.47% at the time of writing at 93.51 of a range between 93.496 - 93.962.

Fed: Yellen warns against raising rates too quickly - BBH

Yellen cements a cautionary tone

Already on unstable grounds, the dollar fell further on the back of Yellen’s cautious remarks overnight in early Asia when speaking to an audience in an event taking place New York University, as part of a larger series of conversations with former BOE Governor Mervyn King. While there was nothing new for markets, she underlined the notion raising interest rates at a gradual pace while cautioning that raising interest rates too quickly slow down the progress of meeting the Fed's 2% inflation target. Meanwhile, the FOMC minutes are coming up ahead of the Thanksgiving holidays in the US as the main focus from here on after the release of today's key data for the dollar. The much weaker-than-expected US durable goods orders data was a further weight to the dollar that came in as a monthly contraction of 1.2% for October vs the expected +0.3%.

Gold levels

On the break of $1285, (21 4-hour SMA), resistance zone, eyes turn to $1294 as the previous a daily close ahead of a test of $1300. To the downside, $1286 opens $1280, (below 200 4-hr SMA at $1,281.43), ahead of $1275 (20th Nov lows) and $1269 (Nov 14 low).

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