• Persistent USD weakness remains supportive of the rally.
• Recent slide in the US bond yields provided an additional boost.
• Remains on track for its third consecutive week of strong gains.
Gold traded with a mild positive bias for the seventh straight session and is currently placed at fresh one-month highs, around $1296 level.
In the pre-holiday thin trading conditions, persistent selling pressure around the US Dollar kept pushing prices for the dollar-denominated precious metal to its highest level since late November. The yellow metal also benefitted from some follow-through technical buying, especially after Wednesday's closing above 100-day SMA.
Meanwhile, the recent slide in the US Treasury bond yields remained supportive for the non-yielding commodity. Adding to this, reviving safe-haven buying, prompted by global political uncertainties, further collaborated to the metal's recent upsurge.
Spot gold has now gained in excess of 1.5% so far this week and is up more than 12% for the year. In absence of any major market moving economic releases, it remains on track for the third consecutive week of gains as investors would prefer to stay away until the resumption of regular trading activity after the New Year holiday.
Technical levels to watch
Bulls would be eyeing a move towards the $1300 handle, above which the momentum seems more likely to get extended towards October monthly highs resistance around $1306 area. On the flip side, any retracement below $1293 level is likely to find strong support near the $1287 region (100-day SMA), below which the commodity could correct back towards $1276 horizontal support.
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