Gold futures were trading higher by 1.3 percent Tuesday morning on the back of a weaker U.S. Dollar and weakness in equity prices.
February Gold futures were last trading at $1198, approaching the key psychological and technical $1200 level.
After briefly breaking above $1200 in early December, only to falter, February Gold has made seven subsequent attempts to break above the $1200 resistance, only to fail each time. With the year-end producer selling mostly completed, it will be interesting to see if gold, down 1.5 percent year-to-date, can finally make a meaningful upside breakout.
If gold does break out, $1225 would be the next meaningful resistance level.
The SPDR Gold Trust (ETF) (NYSE: GLD) and iShares Gold Trust(ETF) (NYSE: IAU) were up more than 1 percent in the premarket.
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