Gold testing daily highs near $1,285.00/oz
- Weaker USD gives extra wings to Bullion.
- Gold retreats from 4-week tops just below $1,290.
- Price action around Gold looks to US politics.
The ounce troy of the precious metal is trading on a choppy fashion so far this week, a tad lower than fresh 4-week peaks just below the key $1,290 area seen on Wednesday.
Gold up on USD selling
The increasing selling pressure around the greenback motivated the yellow metal to resume the upside in past sessions, although the broader sideline theme prevailing since late October remains in play for the time being.
The US Dollar Index (DXY) remains under pressure against the backdrop of rising uncertainty around the US political scenario, mainly stemming from the US tax reform bills and recent news citing R.Muener issuing a subpoena for documents from Trump’s presidential campaign.
Looking ahead, Bullion should remain wary on the prospects for further tightening by the Federal Reserve in December and also next year. It is worth mentioning that recent US CPI figures and the solid health of the labour market could prompt the Fed to continue its tightening cycle in 2018.
Gold key levels
As of writing Gold is up 0.44% at $1,283.78 and a breakout of $1,290.00 (high Nov.15) would expose $1,292.90 (high Oct.20) and then $1,294.97 (55-day sma). On the other hand, the next support lines up at $1,282.16 (100-day sma) followed by $1,270.59 (low Nov.14) followed by $1,266.68 (200-day sma).