Gold prices continue to gain, trading near a 3-month high of Rs39135/10grams in Mcx and $1524 an ounce in Comex, supported by the year-end rally on account of the continued weakening of the US dollar, geopolitical tensions and concern over Brexit.
Prices have been showing strength this time despite the phase 1 deal between the US and China and pause in interest rate cut cycle by the US Federal bank.
US dollar index has fallen from 98 marks to trade around 96.4 as of now, adding extra charm in gold’s upthrust.
Prices will try to test immediate resistance of $1544, and then 2019’s high of $1566.2 an ounce touched on 4th September.
The ongoing trend will halt and turn bearish if prices post daily close below $1494 in Comex and Rs38399 in Mcx near month future.