• Geopolitical tensions revive safe-haven demand and help build on the recent rally. • Weaker USD provides an additional boost and contributed to the strong up-move.
Gold continued gaining positive traction for the fourth consecutive session and spiked to over 2-week tops, beyond $1350 level during the early NA session.
The precious metal extended its recent rally, which started on Friday following the release of disappointing US NFP report and got an additional boost from global flight to safety amid rising geopolitical tensions over Syria.
The matter escalated further after the US President Donald Trump, responding to the Russian ambassador to Lebanon Alexander Zasypkin's overnight comments that any US missiles fired at Syria would be shot down, warned Russia that missiles "will be coming" to Syria.
Adding to this, persistent US Dollar bearish pressure, further aggravated by today's softer US CPI print, underpinned demand for dollar-denominated commodities - like gold and remained supportive of the strong up-move.
Moving ahead, today's FOMC meeting minutes might influence Fed rate hike expectations and eventually provide some fresh directional impetus for the non-yielding yellow metal.
Technical levels to watch
A follow-through buying interest has the potential to continue lifting the commodity towards $1361-62 intermediate resistance en-route $1366 level (YTD high). On the flip side, $1350-49 area now seems to protect the immediate downside, which if broken might prompt some long-unwinding trade and drag the metal back towards $1340 support area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.