Gold strongest since mid-Nov, eyes 100-DMA

Dhwani Mehta FXStreet

Gold accelerates its bullish momentum into early Asia, as the traditional safe-haven asset remains in demand as we progress towards the UK PM May’s speech, which is expected to suggest a Hard-Brexit.

Gold on its way to $ 1230

Currently, gold jumps +1.30% to fresh nine-week highs of $ 1212, now eyeing a test of 100-DMA located at $ 1221.22. The renewed uptick in gold is mainly attributed to increased flight to safety as investors look to protect their capital from the UK PM May’s Brexit speech-induced market unrest, by parking funds in the ultimate safety bet gold.

Further, gold also benefits from prevalent risk-off mode in the market, indicated by heavy declines in the Asian equities and falling treasury yields. Meanwhile, the USD index slumps -0.50% to fresh three-day lows at 100.99.

Al eyes remain on the UK PM May’s speech on Brexit, which will determine whether the bulls will retain control going forward.

Comex Gold Technical Levels

The metal has an immediate resistance at 1215 (round figure) and 1221.22 (100-DMA). Meanwhile, the support stands at 1202.35 (5-DMA) below which doors could open for 1195.32 (daily S2).

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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