Gold shines, rises to four-week high

Gold extended the two-day winning streak in Asia to clock a four-week high of $1173.02/Oz on the back of a broad based US dollar weakness.

Rises on dovish Fed minutes

Fed minutes released overnight showed the policymakers are worried about the negative effects of strong US dollar. More importantly, the minutes showed that the December’s hawkish interest rate projections were based on assumptions that ‘Trump would walk the talk’.

Consequently, the dollar is being sold on fears the Fed may delay the next rate hike if Trump under delivers.

Gold Technical Levels

A break above $1180 (Dec 7 high) would expose $1195 (50-DMA) and $1200 (zero figure). On the other hand, a breakdown of support at $1162.80 (session low) would open the door to $1155.90 (Wednesday’s low) and then to $1146.23 (Jan 3 low).