- The precious metal regains its shine on Wednesday.
- Solid contention is located around $1,480 area.
- The weaker greenback sustains daily gains.
After finding decent contention in the $1,480 region, the ounce troy of the precious metal has managed to regain some poise and resumed the upside today.
Gold correction higher supported by weak dollar
Tuesday’s solid improvement in the risk-associated space, in turn sponsored by positive headlines from the US-China trade front, forced the safe haven metal to shed further ground and breach the critical support at the $1,500 mark.
The upbeat mood in the riskier assets also lent oxygen to stocks and lifted US yields, all in detriment of the demand for gold.
Today’s correction lower in the greenback and declining yields are propping up the recovery in the yellow metal following Tuesday’s sharp pullback of nearly 2% to the $1,480 region.
Gold key levels
As of writing Gold is gaining 0.25% at $1,487.90 and a breakout of $1,504.07 (55-day SMA) would expose $1,519.70 (monthly high Oct.3) and then $1,535.69 (high Sep.24). On the downside, the next support is located at $1,479.55 (low Nov.5) seconded by $1,475.39 (100-day SMA) and finally $1,459.23 (monthly low Oct.3).
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