Gold futures settled above $1,750 an ounce for the first time in more than a month on Friday, gaining as dollar weakness and options-related buying triggered a technical breakout.
After trading slightly higher in early U.S. dealings, gold surged suddenly to above its 50-day moving average, a key technical resistance the metal had failed to breach in more than a month.
Analysts said Friday’s gains could set up for a rally above the more formidable $1,800 level, which bullion has not seen since its rise to a record $1,920.30 in September 2011.
“It’s definitely a technical breakout above the 50-day moving average for the short term. If we break above $1,800, the next real significant resistance will be the prior all-time high near $1,900,” said Adam Sarhan, CEO of Sarhan Capital.