Gold Trading $1250 on Weak US Dollar
Weaker US Dollar helped Gold to gain momentum on Thursday, taking the yellow metal above the closely watched $1250 level.
The Bank of Japan inaction on Thursday sent the US Dollar sharply lower, which is inversely related to gold prices thus making investment in gold more attractive to buyers. At the time of writing, the yellow metal is trading up by $12 at $1257, its highest level since April 21.
Technical levels to watch
From current levels, the metal seems to dart towards $1260-62 area ahead of its next key resistance near $1270 level. On a sustained strength above $1270, gold seems all set to extend its upward trajectory towards $1294-95 resistance area (just below $1300 round figure mark).
On the downside, $1250 level now seems to protect immediate downside. Failure to hold this immediate support might lead to a additional weakness back towards $1240 mark support.