Gold extends gains, climbs above $1,250 to 1-month highs

FXstreet.com (Córdoba) - After rising on Friday more than $25, Gold is extending gains at the beginning of the new week. Recently reached at $1,255.08 the strongest level since December 12 but pulled back toward $1,250.50 afterwards.

The ounce is rising as the US dollar weakens in the market particularly versus commodity currencies.

Bullish outlook for gold

At the beginning of the year gold broke above $1,220 that was then a strong resistance. Once above, demand for the metal increase boosting the price toward $1,250. The rally broke a short-term downside trendline.

Above $1,255 the next key resistance is located around the $1,265 price action zone. During November the level acted as a support and once below, turned to resistance, that capped the upside about a month ago. To the downside support could be located at $1,245 and below at $1,234 and $1,216 (last week lows).

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