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Gold re-approaches 9-month highs beyond $ 1200

Having bottomed near $ 1205 levels in the recent dealings, the yellow metal gathered pace and now heads for a retest of fresh multi-month highs printed at 1214.40 in early Asia.

Gold regains momentum as USD falls back in the red

Currently, gold jumps 1.20% to 1209.10, recovering from a brief dip to 1205.60, session lows. The bullion retreated nearly $ 10 from multi-month peaks as markets resorted to profit-taking after gold prices reached the highest levels since May 2015. However, the bulls found support and managed to regain lost momentum as risk-aversion continues to underpin prices.

Gold prices advanced this session after stops above $ 1200 mark got triggered and fuelled a fresh $ 15 rally. While broad based US dollar selling after Yellen’s testimony failed to impress the USD bulls, also boosted the gains in the bullion.

Speaking at the semi-annual Monetary Policy Report before the House Financial Services Committee on Wednesday, Yellen’s testimony seemed more upbeat suggesting further rate hikes remain likely in 2016.

Gold Technical Levels

The metal has an immediate resistance at 1214.40 (daily high) and 1228.10 (May 2015 High). Meanwhile, the support stands at 1200 (psychological levels) below which doors could open for 1193.80 (5-DMA).

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