The precious metal resumed its strong gains as the upside trend remains intact. Gold prices are testing a fresh 5-year high. At the time of writing, gold is trading at 1379.90 an ounce. The gains came partly due to the dovish Fed statement and partly because of the reports of Tehran shooting down a US drone. Rising tensions between Iran and the US have kept global sentiment somewhat in check.
Will Gold Continue to Rise Higher?
As gold prices broke past the 1350 handle, the precious metal continues to trend higher With the current momentum, it is likely that gold will continue to push higher, targeting the 1400 an ounce level. The immediate support is likely to be formed at the 1350 handle which could be tested on a dip.