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Spot gold touched $1,130.11 an ounce, its strongest since Nov. 3, and was trading down 0.3 percent at $1,125.5 by 14.27 ICT.
Increased volatility in other assets has benefitted gold and it could see more gains as global central banks may be forced into easing monetary policy further this year to spur growth.
With rates close to zero, the "only option is to move either towards zero or negative rates as the Japanese and selected European countries are already doing in a desperate attempt to force banks to lend", INTL FCStone analyst Edward Meir wrote to clients. "Whatever the case, this should be constructive for gold."
A break above $1,136 could lift gold towards $1,157, a level reached in late October, said ScotiaMocatta technical analysts.
Reference: Reuters
The pair is trading along an uptrend with target on 1135, and may be expected to continue, while pair is trading above support level 1125.
An downtrend will start as soon, as the pair drops below support level 1125, which will be followed by moving down to support level 1115.
XAU/USD (gold price in terms of USD) rose to the highest levels since Nov 3 in the last US session at 1129.76, just a whisker short of $ 1130 mark and almost near the 200-DMA at 1130.21 levels.
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