Gold prices hit their highest level since September on Monday, as the dollar languished at three-year lows against a basket of currencies. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The U.S. dollar remained on the defensive early on Monday as investors continued to price in the risk of tighter monetary policies in Japan and Europe.
Last week, gold prices rose for the third straight session on Friday to hit fresh four month highs after hawkish European Central Bank minutes boosted the euro to multi-year highs against the dollar.
Gold futures were at $1,343.70 a troy ounce by 10:05 am GMT, up $8.50, or about 0.64%, from the last session’s closing price. It hit the best levels since Sept. 8 at $1,345.00 earlier in the session.
On the technical charts, Gold has made higher highs and higher lows on the daily charts. The market is trading above all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 77.17 and MACD is above the signal line.
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