Gold is pushing higher in most currencies is a clear indication of good physical buying interest

Gold is above the resistance $1,024/$1,026 level; we expect this level to hold, given that the dollar has depreciated only marginally. However, gold’s rally does open it up to a break above $1,140 and possibly $1,148. Gold has been assisted by some dollar depreciation, but this cannot be explained only by currency movements. The fact that gold is pushing higher in most currencies is a clear indication of good physical buying interest.

However, speculative interest is also rising. We continue to see a steady flow of physical buying interest, which is indicative of good underlying support.