Gold climbs above $2700 and nears the mid-November high

Gold is now up $16 on the day to $2710, which is the highest since November 24. It’s also the third day of gains since the PBOC revealed it had resumed buying gold reserves for the first time in six months. Gold is now up $75 since the news of the resumption of purchases.

Aiding gold today was also the US CPI report, which met analysts estimates. That led to some relief around fears the Fed might halt rate cuts and has since weighed on the US dollar.

The next hurdle for gold is $2721, which was the mid-November high. If that breaks, we could see a fresh challenge of the all-time high of $2790 set on October 31.

This article was written by Adam Button at www.forexlive.com.