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·         The XAU/USD pair gained traction in the NA session and advanced to its best level since December 5 at $1275.

The DXY's reaction to the mixed macroeconomic data was relatively subdued as the trading volume continues to thin out ahead of the Christmas break. At the moment, the index is up 0.2% at 93.03.

·         Technical outlook

With today's upsurge, the pair rose above the critical 200-DMA and a weekly close above that level could open the door for further gains in the short term. The RSI indicator on the daily chart is also moving north above the 50 mark, suggesting that the bullish momentum is gathering strength. $1277 (Dec. 4 high) could be seen as the initial resistance ahead of $1290 (Dec. 1 high) and $1300 (psychological level). On the downside, $1271 (200-DMA) is now seen as a critical support followed by $1261 (20-DMA) and $1252 (Dec. 28 low).

·         US interest rates, the dollar value, geopolitical uncertainties and demand from China and India will continue to determine the gold price in 2018, say industry experts.

Despite rising US interest rates and a bull run in equities, gold delivered a double-digit growth in 2017. Looking ahead, analysts believe that gold may maintain an upward trend in 2018.