Spot gold, which is priced in dollars, was up 0.4 percent at $1,334.75 an ounce, as of 0427 GMT. Earlier in the session, it hit $1,335.81, its highest since Feb. 6.
U.S. gold futures rose 0.5 percent to $1,337.6 per ounce.
• The dollar index was down 0.3 percent against a basket of currencies at 89.436, its lowest in a week.
A retreat in the greenback helped the bullion gain over 2 percent from a one-month low of $1,306.81 hit last week.
• “With the U.S. dollar once again striking a bearish chord, the long gold set up looks favourable,” said Stephen Innes, head of trading APAC at OANDA.
“However, with nearly 100 percent of gold appeal trading off the back of U.S. dollar weakness, the U.S. CPI (consumer price index) reading could be a day of reckoning for gold bulls,” Innes added.
• “Recent price action is indicative of short-term positioning, with expectations of strength toward $1,335 - $1,340 as short positions are further tested,” MKS PAMP Group trader Sam Laughlin said.
“The caveat to a short-term push higher, however, is the upcoming Chinese New Year holiday, which will remove physical demand from the market.”
• Spot gold is expected to edge up into a range of $1,343-$1,352 per ounce, as suggested by a retracement analysis, according to Reuters technical analyst Wang Tao.
• Among other precious metals, silver rose 0.4 percent to $16.61 per ounce. Platinum climbed 0.6 percent to $979.20, while palladium gained 0.5 percent to $990.10 per ounce.
Reference: Reuters
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