futures on Comex extended its bullish run into the Asian trades and jumped to fresh multi-month highs on the back of increased flight to safety amid falling Asian stocks.Gold adds to post-ECB/Draghi rally
Currently, gold rises 0.64% to 1281, having posted fresh thirteen-month highs at 1283.70 some minutes ago. The bullion broke the overnight consolidation box to the upside and clinched the highest levels since Feb 2015 as the bulls received fresh impetus from increased safe-haven bids amid negative performance on the Asian indices. Japan’s Nikkei is down over 1%, Australia’s ASX drops -0.3%, while the Shanghai Composite index slides -0.66%.
Moreover, ongoing upward trend in the gold fund inflows also remains supportive of the gold prices. Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, continue to trade at multi-year highs.
The yellow metal witnessed nearly $ 40 massive rally on Thursday after the euro regained momentum and surged 400-pips against the US currency following Draghi’s comments at the ECB press conference. Draghi indicated in his speech that further rate cuts in the euro zone are unlikely and thus, poured cold water on the negative rates policy expectations.
Next of importance for gold remains the crucial FOMC decision, which may set further direction on the price-action. It’s widely anticipated that the Fed may stand pat at its policy decision due next Wednesday.Gold Technical Levels
The metal has an immediate resistance at 1284.70 (Feb 2015 High) and 1300 (round number). Meanwhile, the support stands at 1270.50/1270 (daily low) below which doors could open for 1266.40 (5-DMA).
Gold futures on Comex extended its bullish run into the Asian trades and jumped to fresh multi-month highs on the back of increased flight to safety amid falling Asian stocks.
(Market News Provided by FXstreet) [...]