Gold advances further above $1310, up more than 1%

Gold extended its advance reaching a fresh year-to-date high at $1,311/oz late in the US afternoon. The last time it traded at those levels was back in November 2016, on US Presidential election day.

A weak US dollar boosted the yellow metal, that gained $15. From Friday’s low, it has risen 2.65%. It is headed toward the highest daily close since October 3. The greenback remains weak affected by uncertainty about Fed’s policy following Yellen’s Jackson Hole speech, US political jitters, and Hurricane Harvey.

XAU/USD Technical outlook 

“From a technical point of view, the daily chart shows that the price is far above all of its moving averages, with the 20 DMA now heading sharply higher, but around 1,280.00, while the Momentum indicator bounced from its mid-line, as the RSI accelerates north, now around 69, all of which favors additional advances ahead”, said Valeria Bednarik, Chief Analyst at FXStreet.

In the short-term, the 4 hours chart, according to Bednarik, shows technical indicators in extreme overbought territory, with the RSI currently at 83, but with no signs of turning lower yet. “The pair has surpassed multiple relevant highs, with the next strong resistance now being 1,337.35, November 2016 monthly high”, she added.