NEW YORK (Scrap Register): Gold has entered December on an “incredibly bullish note” as prices have climbed to their highest level in more than a month, said Lukman Otunuga, research analyst at FXTM.
“With the dollar facing multiple headwinds in the form of falling U.S. Treasury yields and a Fed that seems to be adopting a dovish tone, this is all good news for zero-yielding gold,” Otunuga added.
“Today’s aggressive appreciation continues to highlight how the yellow metal remains primarily influenced by the dollar’s performance,” Otunuga noted.
On the technical charts, the market has consistently higher highs and higher lows, which the analyst describes as bullish. “A solid breakout above the $1,240 resistance level may open a path towards $1,248,” Otunuga concluded.