Gold rallies around 2% near $1,220

The ounce troy of the precious metal has climbed to fresh 2-month highs beyond the key barrier at $1,200 on Thursday backed by the persistent offered tone around the Dollar.

Gold stronger on Dollar weakness

USD continues to recede ground so far this week as Trumphoria seems to have lost momentum, helping at the same time the risk-associated assets to regain part of the ground lost in the recent USD-rally.

The sharp sell off in the buck seems to have been originated in recent comments by D.Trump, citing the greenback as (too?) strong, although the context was vs. the Chinese Yuan. Adding to this view, NY Fed W.Dudley argued earlier today that the strong Dollar could be a drag on imports and domestic prices.

Gold key levels

As of writing Gold is gaining 1.53% at $1,214.65 and a breakout of $1,219.05 (50% Fibo of the 2016 up move) would aim for $1,232.61 (100-day sma) and then $1,255.83 (38.2% Fibo of the 2016 up move). On the other hand, the next support is located at $1,182.27 (61.8% Fibo of the 2016 up move) ahead of 1,181.74 (55-day sma) and finally $1,176.50 (low Jan.11).