Gold hits one-month highs, now eyeing to conquer $1300 mark
• Finally breaks through $1295 supply zone on persistent USD selling.
• Move beyond $1300 handle now seems a distinct possibility.
Gold finally managed to break through $1295 supply zone and touched an intraday high level of $1299, marking its highest level since Oct. 16.
The precious metal's steady rise from session lows near $1287 region got an additional boost from some renewed USD selling bias. In fact, the key US Dollar Index has now dropped to fresh multi-week lows and was seen boosting demand for dollar-denominated commodities - like gold.
Meanwhile, possibilities of some short-term trading stops being triggered, on a sustained move beyond $1295 barrier, also seems to have collaborated to the yellow metal's spike over the past hour or so.
It would now be interesting to see if the up-move confirms a fresh bullish breakout or meets with some fresh supply at higher level amid a goodish pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding metal.
Today's US economic docket features the only release of new home sales data, which would now be looked upon for some short-term trading opportunities ahead of Fedspeaks.
Technical levels to watch
Momentum beyond the $1300 handle seems more likely to get extended towards October monthly highs resistance near $1306, above which the metal is set to challenge $1312-13 supply zone.
On the flip side, $1292 level now becomes an immediate support to defend, which if broken could accelerate the slide back towards 100-day SMA support near the $1284 region with some intermediate support near $1287-86 zone.