Gold keeps 2017 highs near $1,280/oz

The troy ounce of the precious metal is extending the weekly rally to the area of fresh YTD tops around the $1,280 mark on Wednesday.

Gold up on weak USD

The demand for the yellow metal stays firm as geopolitical concerns in Asia and the Middle East remain everything but abated, giving extra boost to the safe haven metal.

In addition, the greenback is prolonging its weak note so far this week, prompting the US Dollar Index (DXY) to deflate from recent tops in the 101.20 region to the mid-100.00s, where it seems to have found some support for the time being.

Gold has quickly left behind the critical 200-day sma at $1,254 and the tough resistance area around $1,265 (February and March tops), opening the door for a potential test of the next key level just below $1,320 seen in early November.

Gold key levels

As of writing Gold is gaining 0.19% at $1,276.65 facing the next up barrier at $1,281.75 (2017 high Apr.12) seconded by 1,307.00 (high Nov.2 2016) and finally $1,350.50 (high Sep.7). On the downside, a break below $1,254.79 (200-day sma) would open the door to $1,241.50 (low Mar.31) and then $1,234.45 (55-day sma).