10.06 - GOLD gains some traction
- by George Solotarov
Gold edged higher for the third consecutive session on Wednesday and was last seen trading just below the $1720-22 pivotal resistance.
The US dollar added to its recent losses and the bearish pressure remained unabated through the Asian session on Wednesday. In fact, the key USD Index dropped to three-month lows and turned out to be one of the key factors underpinning demand for the dollar-denominated commodity.
Adding to this, investors now seemed to price in the possibility of a dovish outlook from the Fed. This was evident from some follow-through slides in the US Treasury bond yields, which provided an additional boost to the non-yielding yellow metal and remained supportive.