Gold Climbs Above $1275, Benefiting from USD Weakness
A fresh bout of weakness across global financial markets is assisting Gold recovery for second day running, lifting the metal back above $1275 level.
Global risk-on sentiment on Tuesday dragged the yellow metal to an important support confluence near $1257-55 zone. The metal, however, witnessed a remarkable recovery from Tuesday's low and a fresh round of risk-off trade boosted the yellow metal on Wednesday as well. Gold is currently trading at high point of the day, $1278.
Gold also seems to be benefiting from the US Dollar weakness witnessed across the board. In absence of any fresh fundamental triggers from the US, bulls are likely to continue boosting the precious metal.
Technical levels to watch
On a sustained move back above $1280 level, the metal could immediately aim towards weekly high resistance near $1287. A follow through buying interest beyond $1287 is likely to confront resistance at the recent closing highs resistance near $1292. A sustained break through $1292-93 resistance now seems to pave way for extension of the yellow metal's upward trajectory towards multi-month high level of $1303 touched at the beginning of this month.
Alternatively, weakness back below $1275 is likely to get bought into near $1270 round figure mark support. However, additional selling pressure below $1270, leading to weakness below $1267-66 area would negate possibilities of any further up-move, taking it back 20-day SMA support, currently near $1260 level.