FXStreet (Córdoba) – Gold prices extended gains and printed a new high at USD 1088.70/Oz, the strongest level since November 16. The value of the metal remains near the highs, consolidating a daily gain of more than 2%, the best performance in more than a month.
The yellow metal remained steady after the NFP report but then gained momentum, broke above a key dynamic resistance (downtrend line coming from Nov 16 highs) and accelerated to the upside. A liquidation of short positions boosted the price of gold even further.
Moving of multi-year lows
The rally of XAU/USD stopped slightly below USD 1090. It remains with a bullish tone despite technical indicators in the short term are showing extreme reading after a rally of more than USD 20 in a few hours.
On a weekly basis, it is about to end with gains after falling during the previous six weeks. Yesterday gold reached the lowest level since 2009 at USD 1046.40/Oz.
(Market News Provided by FXstreet)