Gold extends gains and hits fresh six-year highs above $1550

• Weaker Dollar and lower US yields continue to drive gold prices higher. 
• XAU/USD heads for the highest close since April 2013. 

Gold rose further during the American session favored by the combination of an improvement in risk sentiment, a weaker US Dollar and also a decline in US yields. The bullish bias was reinforced after the breakout above $1,550/oz. 

Gold Keeps shinning 

On Tuesday, Gold found resistance below $1,550 and earlier today pulled back to $1,533 from where it rebounded sharply to the upside. To move higher was strong enough to break above the $1,550 barrier. XAU/USD peaked at $1,556 reaching the highest intraday level since April 2013. 

Near the end of the session, it is hovering around daily highs, consolidating a $20 rebound from the lows. If it remains able to hold on top of $1,550 it would point to further gains. The next resistance could be seen at $1,560 followed by $1,585. 

A slide back below $1,550 would remove some of the bullish pressure. The critical short-term support is located at $1,530: a break lower could expose $1,500. 

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