Gold prices on Wednesday held gains made in the previous session as the US dollar weakened, but lacked impetus to push higher on increased odds of an interest rate hike by the Federal Reserve. Spot gold was up 0.14 percent at $1,229.36 an ounce at 0610 GMT, after rising 0.67 percent in the previous session. US gold futures rose 0.41 percent to $1,229.50.
"At this moment there is some kind of rebound but $1,230 should be the immediate resistance level that it should not cross with a very high momentum," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. "$1,215 to $1,250 should be the trading range just to allow some time for people to think and reflect on the possibilities of policy options for the President-elect." Spot gold may test a resistance at $1,235 per ounce, a break above which could lead to a further gain to the next resistance at $1,249, according to Reuters technical analyst Wang Tao.
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