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New York - Gold rose above $1 750 an ounce for the first time in five weeks on Friday, gaining 1.3%, as a drop in the dollar and options-related buying triggered a technical breakout.
After trading slightly higher throughout early US dealings, gold surged suddenly to above its 50-day moving average, a key technical resistance it had failed to breach in more than a month.
Analysts said on Friday's gains could lead to a test above the more formidable $1 800 level, which bullion has not seen since its rally 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.
Bullion also tracked higher with US equities as both markets posted sharp gains in abbreviated sessions after the Thursday's Thanksgiving holiday. For the week, gold gained 2.3% after losing 1% last week.
After trading slightly higher throughout early US dealings, gold surged suddenly to above its 50-day moving average, a key technical resistance it had failed to breach in more than a month.
Analysts said on Friday's gains could lead to a test above the more formidable $1 800 level, which bullion has not seen since its rally 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.
Bullion also tracked higher with US equities as both markets posted sharp gains in abbreviated sessions after the Thursday's Thanksgiving holiday. For the week, gold gained 2.3% after losing 1% last week.
