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Gold extends rebound after reclaiming its 200-DMA
Societe Generale points to a key support area near the 200-DMA around $4,510, while upside levels are flagged at $4,730 and $4,770.
Societe Generale analysts said gold has broken out of a small base formation and reclaimed its 200-DMA, sustaining an extended rebound. The bank framed the move around concerns tied to dollar debasement and a rise in term premium.
In its technical outlook, Societe Generale highlighted several upside hurdles, including $4,730 and $4,770, with the April peak around $4,890. The analysts also flagged the 200-DMA near $4,510 as a key support level.
The broader backdrop, according to the same commentary, includes persistent US dollar weakness linked to policy and trade-related uncertainty. FXStreet notes traders were also watching details on potential Iran sanctions for further impetus, as gold sat near its highest level in three months around $4,650 in the European session on Monday.
FXStreet further cited that the US Treasury moved to at least double liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year segments, with the maximum lifted from $2 billion to at least $4 billion per operation starting September 9 through November 4.
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