FXStreet — The price of gold moved up yesterday above its 200-day line and jumped today, the mark of 1,250 USD. This corresponds to the highest level since 03. May.
The increase in the price of the precious metal at the beginning of the American business was strong, driven by the decline of US yields. The political uncertainties in the world’s largest economy had spooked the international financial markets on Wednesday. The demand for «safe havens» such as Gold to rise.
In addition, the Greenback stands on a broad Front under pressure, due to the recent disappointments in economic data, and on the other hand, the political uncertainty in the United States. The US Dollar Index depreciated to the lowest level since the beginning of November, and supported the Dollar-denominated commodities such as Gold.
To blame for the gold price, the declining interest rate hike speculation in the US are rising above it. Gold sheds in contrast to other investment options, no interest rates, so higher interest rates usually leads to a reduction in the attractiveness of the precious metal.
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A jump above the resistance mark at 1.256 USD is expected to allow the price of gold in the direction of 1,264 USD and 1.268/USD 70 to upgrade. On the downside, the 200-day line at 1.247 USD, as well as the supports at 1.242 USD and 1.237 for the next collection brands define.
** FXStreet News Editorial, FXStreet**