Gold soars and breaks above $1,280

• Gold rose $10 in 60 minutes, breaks important technical levels.
• Dollar down across the board as crude oil hits fresh 2-year high.

After hours of limited price action, gold broke decisively to the upside. The yellow metal jumped from $1,272 to $1,282 an ounce, reaching the highest level since Thursday. 

The rally pushed the price above a relevant dynamic resistance and also toward a strong barrier. So if the price continues to rise it could clear the way to more gains in the short-term. 

The rally was boosted by a slide of the US dollar in the market as crude oil price hit fresh 2-year highs and by technicals. The Dollar Index fell from 94.90 to 94.65, reaching a fresh low. It is still near monthly highs but the bullish momentums is offering signals of short-term exhaustion. A slide below 94.25 would intensify the negative bias in the DXY. 

Technical Levels to watch 

At the moment of writing, XAU/USD is at daily highs at $1,282 more than $10 above Friday’s close. It is holding above a downtrend line coming from the October high and stands at $1,276 also on top of the 20-day moving average. 

Price is testing a strong resistance range $1281/$1284. If it breaks above it would be trading at 2-week highs, with a target at $1290. Above the next resistance might be seen at $1,295. On the flip slide, the area around $1,276 is now the immediate support, followed by $1,272 and $1,265 (Nov 3 low).