Gold rises to $1,883, its highest level since 18 November
That marks a fresh one-month high for gold as price takes out the 8 December high of $1,875.39. As much as gold has struggled amid all the vaccine optimism announcements in November, it is staging a modest comeback in December on dollar weakness.
Powell's remarks yesterday were a reminder to the market that easy policy is here to stay for a long while, and that is reassuring for gold's prospects in the longer-term.
The 61.8 retracement level of the drop in November @ $1,888.89 is the next target to the upside before looking towards $1,900 and the 100-day MA (red line) @ $1,906.59.
The typical gold seasonal trade is working out rather well so far, with the yellow metal now trading up by nearly 6% so far this month.
