Gold gains momentum but remains limited by $1127

By FXStreet FXStreet (Córdoba) – Gold prices gained momentum during the last hour and reached the highest level since last Friday after breaking above $1124. The upside remains limited by the $1127 area.

Gold finally rises but unable to rally

The US dollar weakened in the currency market after the beginning of trading in Wall Street particularly against commodity currencies. Crude oil is rising while copper trades at the highest level in one and a half months. Gold held steady while others commodities rallied.

XAU/USD outlook

Currently gold trades modestly higher at $1125/Oz; but above important intraday levels. The price of the metal is attempting to move of the $1115 support area that was tested on Monday. From there rebounded and today is rising further at a slow pace.

Price is back above the 20-SMA in 4-hours charts and remains near the highs. A break above $1127 could open the doors for more gains and a possible test of $1130/31 where the next resistance area is located. On the opposite direction, if it drops back below $1120 it could lose upside momentum and expose once again the $1115 zone.
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Source:: FX Street