Gold Rises to Its Highest Level in a Month

Gold price is posting strong gains in midday U.S. trading Wednesday, hitting 4 week highs. Buy stop orders were hit in the futures markets after key technical resistance levels were penetrated on the upside.

A selloff in the U.S. dollar index today also worked in favor of the precious metal market bulls. December gold futures were last up $35.90 at $1,795.00. December Comex silver was last up $0.646 at $23.16 per ounce.

Gold prices rose to their highest level in nearly a month on Thursday, supported by a decline in the dollar and US Treasury yields, as investors assessed whether the Federal Reserve would tighten monetary policy early expected.

Spot gold rose 0.3 percent to $1,797.27 an ounce by 0920 GMT, after hitting its highest level since September 15 at $1,797.31, while US gold futures rose 0.2 percent to $1797.90.

The dollar and benchmark 10-year US Treasury yields fell today.

Independent analyst Ross Norman described the rally in gold as “constructive” but said it should break the technical resistance levels at $1800 and $1,835 before any other big move higher.

For other precious metals, silver rose in spot transactions 0.9 percent to $23.28 an ounce, platinum rose 1.6 percent to $1036.52, while palladium rose 3.7 percent to $2184.26.