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  • Gold up for the third day in a row, about to post the highest close in a month.
  • Rally lost momentum near $1900 and corrected lower, bullish bias intact.

A weak US dollar, risk appetite and technicals boosted gold prices. The ounce peaked during the American session at $1886, the highest level since November 16. It then pulled back toward $1880.

Despite moving off high, XAU/USD is up $20 or by 1.25%. Since Tuesday it gained more than 3%. The key driver has been a decline of the US dollar across the board. The DXY dropped under 90.00 on Thursday for the first time since 2018. Commodities and emerging market currencies are also higher on Thursday.

Looking at $1900

The rally in gold looks set to continue over the short-term and while it is above $1850. The next strong resistance is seen at $1900, and above around the $1915 area. Despite overbought reading in some near-term technical indicators, the current move higher still looks strong.

A decline back under $1850 could suggest some exhaustion on the upside in the metal. The next support is seen at $1820.

Technical levels