Gold trades to its highest levels since 9 November, moves above $1,930
The gold train marches on after a solid December month, as buyers are pushing the upside momentum further after a bit of a pause in holiday thin trading last week.
The upside was capped by the $1,900 level as well as the 100-day moving average (red line) but both levels have since given way and that leaves room for further upside – at least from a technical perspective.
The early November highs around $1,960-65 will be eyed next for buyers.
So, what exactly is driving gold higher to start the new year?
Dollar weakness is one of the key drivers to the gains today but essentially, gold’s fundamentals are not changed whatsoever since December trading.
Major central banks keeping a more easy policy stance, adding to negative yielding debt and the rise in bets for the reflation trade, just adds to tailwinds for gold.
For now, keep above $1,900 and the 100-day moving average and buyers will continue to keep the more bullish momentum as the new year gets underway.