Gold Should close above 606.50 levels

Spot gold has broken above the Sept 28 high at $606.50 to post a high of $610.50/oz before easing back slightly.

The precious metal will need to close over $606.50 for upward momentum to build.

Gold is being buoyed by a weaker dollar, recently firmer oil prices, and renewed customer demand, Given the more bullish sentiment across the commodities spectrum the metal appears to be making a challenge of the pivotal $607 chart line and 100-day MA at $607.90.

A successful breach, which is the likely outcome this time, has the potential to generate fresh interest from investors as well as speculators and will lead gold back to the $617-620 area initially before targeting $645.

Gold topped out at $640.00 in early Sept before hitting a low of $559.40 on Oct 4.