Gold rises as technical momentum builds despite stronger dollar
A break above $1,230 to $1,235 an ounce will confirm an inversion, as focus moves to the US Fed September policy meeting minutes
Bengaluru — Gold rose on Wednesday, rebounding from a key support level with technical momentum proving more influential than a stronger dollar and rallying stock markets. Spot gold was up 0.2% at $1,226.54 an ounce at 10.34am GMT. US gold futures were down 0.1% at $1,229.80 an ounce. “Gold is moving technically and is giving a very good signal after it rebounded from $1,220 levels,” ActivTrades chief analyst Carlo Alberto De Casa said. “We are now approaching another key resistance area around $1,230 and a break above $1,230 to $1,235 will confirm an appropriate inversion for gold and it would no longer be a rebound.” Prices have eroded both the 55-day moving average about $1,200, and a six-month downwards trend, and closed above the August 28 high of about $1,214, Commerzbank analysts wrote in a note. Gold, sometimes seen as a harbour during political and economic uncertainty, is still some 10% down from peaks hit in April as investors opted for the dollar while the US-China trade...
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