Gold price hits one-month highs, now eyeing to conquer $1300 mark

New York (Nov 27)  Gold finally managed to break through $1295 supply zone and touched an intraday high level of $1299, marking its highest level since Oct. 16.

The precious metal's steady rise from session lows near $1287 region got an additional boost from some renewed USD selling bias. In fact, the key US Dollar Index has now dropped to fresh multi-week lows and was seen boosting demand for dollar-denominated commodities - like gold.

Meanwhile, possibilities of some short-term trading stops being triggered, on a sustained move beyond $1295 barrier, also seems to have collaborated to the yellow metal's spike over the past hour or so.

It would now be interesting to see if the up-move confirms a fresh bullish breakout or meets with some fresh supply at higher level amid a goodish pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding metal.

Today's US economic docket features the only release of new home sales data, which would now be looked upon for some short-term trading opportunities ahead of Fedspeaks.

Technical levels to watch

Momentum beyond the $1300 handle seems more likely to get extended towards October monthly highs resistance near $1306, above which the metal is set to challenge $1312-13 supply zone.

On the flip side, $1292 level now becomes an immediate support to defend, which if broken could accelerate the slide back towards 100-day SMA support near the $1284 region with some intermediate support near $1287-86 zone.

FXstreet