Gold hovers near 7-week highs

By FXStreet FXStreet (Mumbai) – After booking gains for the fourth consecutive week on Friday, gold prices extend higher and tested fresh two-month highs near 1159 levels on Monday, as broad based US dollar weakness continues to underpin the yellow metal.

Gold capped below $ 1160

Currently, gold trades marginally higher at 1157.10, slightly retracing from fresh session highs reached at 1158.60 in last hours. Gold prices found fresh bids near 1154.50 region and re-attempts another run towards fresh seven-week highs as the dropping bets of the fed rate lift-off this year after the FOMC minutes, continues to bolster the non-interest bearing gold.

Further, hedge funds and money managers raised their bullish bets in COMEX gold and silver to four-month highs in the week ended Oct. 6, data on Friday showed, also boosts the sentiment around the bullion.

Meanwhile, the prices are expected to remain supported amid thin volumes as Japanese and the US markets are closed for separate public holidays on Monday.

Gold Technical Levels

The metal has an immediate resistance at 1159.80 (Oct 9 High) and 1162.17 (200-DMA) levels. Meanwhile, support stands at 1155.89 (hourly 20-SMA) levels below which doors could open for 1152.46 (5-DMA) levels.
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Source:: FX Street