Gold prices moved higher during yesterday's session as the Dollar continues to give back ground following a less than supportive release of CPI for November as it printed lower matching expectations. Concerns about the Federal Reserve's less hawkish approach in hiking interest rates next year and over the US economic outlook especially with the inverted yield curve, are helping to underpin the yellow metal and weigh on the greenback.
Gold seems to have created a bull flag as we can see on the chart that points towards the uptrend continuation. Prices are hovering just below the upper band and the $1247.5 resistance level. Momentum has started to turn bullish as the RSI shows so we will be waiting for a break above the $1247.5 level so we can have a confirmation that the upward move will most probably happen and then we will be focusing on the $1255.1 level.
Support: 1237.79 / 1234
Resistance: 1241.76 / 1247.5