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Gold gains momentum and rises to $1285 as USD retreats

  • Metal recovers as USD retreats.
  • Risk appetite surges: DJIA eyes record highs.  
  • Market volatility limited ahead of FOMC minutes and Thanksgiving. 

Gold gained momentum during the last hours and bounced from near daily lows back above $1280. The yellow metal printed a fresh high at $1284.60/oz. Previously found support at $1276.10, slightly above yesterday’s low. 

At the moment of writing, gold was holding near the highs with the intraday tone favoring the upside. It was being supported by a slide of the US dollar across the board. 

The US Dollar Index fell from levels on top of 94.00 to 93.75. Equity prices in Wall Street were up. The Dow Jones was at 26,605 points, up 0.75% moving toward record highs. Despite the positive sentiment in equity markets, the yen was still higher in the market with USD/JPY near 112.00. 

Better-than-expected US data (Existing home sales) failed to support the greenback. Attention now turns in the US toward the FOMC minutes to be released tomorrow. On Thursday volume is likely to drop dramatically amid Thanksgiving. 

XAU/USD Technical levels

Immediate support to the downside is now seen at $1280, followed by $1275 and $1269 (Nov 14 low). On the upside, resistance levels might be seen around the $1285 zone followed by $1294; a daily close above that level would clear the way for a test of $1300. 
 

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