Gold taps $1200 mark on broad based USD weakness

Gold extended its near-term upward trajectory and touched $1200 psychological mark for the first time since Nov. 23.

Spot gold caught fresh bids on Thursday as the first press conference by the US President-elect Donald Trump provide little clarity on future fiscal policies, which fueled some kind of uncertainty in Trump's policies. Moreover, the US Dollar post-election upsurge is also being questioned now and a sharp slump in the greenback is eventually boosting demand for dollar-denominated commodities - like gold. 

Focus now shifts to the Federal Reserve's monetary policy outlook and investors are likely to take fresh clues on the same from a host of Fed speakers, including the Fed Chair Janet Yellen. 

From a technical perspective, the yellow metal has moved back above 50-day SMA for the first time since the US-presidential election and is pointing to strong bullish momentum, at least for the near-term. 

Technical levels to watch

A follow through buying interest has the potential to lift the commodity towards $1207 horizontal resistance above which the upward trajectory could get extended towards $1217 resistance area. On the downside, 50-day SMA resistance break point, near $1190 region, now becomes immediate support, below which the metal could witness a profit-taking slide back towards $1180 horizontal support.