Gold pushes higher to fresh multi-month tops as USD remains under pressure

The troy ounce of the precious metal added more than $10 in the last hour and advanced further to a new peak level since Trump's election victory. At the moment, the XAU/USD is up 0.9% at $1285.5, about $1 off the new high.

Pressured by the recent comments of President Donald Trump, the US Dollar Index dropped to a new two-week low at 100.01 before recovering to 100.10 area, where the index is losing 0.55% on the day. Trump stated that the dollar was too strong and that he was in favor of a low-interest rate policy. The latter comment suggests that Trump is likely to add more dovish members to the Fed.

• U.S. President Trump likes "low-interest" rate policy - WSJ

Moreover, the rising geopolitical tensions also keep the demand for safer Gold high, providing the XAU/USD with an additional boost. According to Reuters, Trump stated that the U.S. is prepared to take on North Korea without China if needed and they were not getting along with Russia at all. Earlier in the session, U.S. Secretary of State Rex Tillerson met with his Russian counterpart Sergey Lavrov and noted that the United States - Russia relations were at a low point.

Technical outlook

The immediate resistance for the metal is aligned at $1292 (Nov. 11 high) before $1296 (Nov. 7 high) and $1300 (psychological level). To the downside, supports could be seen at $1272 (daily low), $1261 (Apr. 4 high) and $1254 (20-DMA).