- Gold preserves bullish momentum on Friday.
- DXY eases below 92 as USD sell-off continues.
The XAU/USD pair extended its uptrend that started around mid-December on the final trading day of the year and touched the $1300 handle for the first time since October 16. As of writing, the pair was trading at $1299.80, up nearly $5, or 0.4%, on the day.
After dropping to its lowest level since July at $1236 earlier this month, the XAU/USD pair staged an impressive rally and gained more than $60 in less than 20 days. The greenback's poor performance in the second half of the month and a rising interest for commodities amid optimistic expectations of the global economic recovery gaining momentum in 2018 fueled the pair's upside. At the moment, the DXY is at 92.02, down 0.35% on the day and more than 9% on the year.
With the trading volume thinning out ahead of the New Year weekend, the pair could have a difficult time extending its daily gains. However, a yearly close above $1300 could grab the attention of more buyers in the first week of 2018.
Technical levels to consider
The pair could encounter the first hurdle at $1306 (Oct. 16 high) ahead of $1313 (Sep. 26 high) and $1320 )Sep. 18 low). On the flip side, supports could be seen at $1287 (Dec. 28 low), $1281 (Dec. 27 low) and $1273 (200-DMA).
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 securities. 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 Forex 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.