Gold rose to an almost three-week high on Tuesday as the U.S. dollar retreated from multi-month highs and physical demand rose before India's late-October festival season. The U.S. dollar slipped from a nearly eight-month high against the euro and a roughly three-month peak against the Japanese yen after comments from Bank of England Governor Mark Carney dampened expectations for more monetary stimulus in Europe. Gold is a traditional gift during two of the most important Hindu festivals, Dhanteras and Diwali, which will be celebrated at the end of the month. physical demand from Asia provided a floor to gold prices. China accounts for 27 percent of global demand for gold, while India for 24 percent, analysts said in a note. Spot gold was up almost 1 percent at $1,273.87 an ounce, after rising to $1276.67, the highest since Oct. 5. U.S. gold futures settled up 0.8 percent at $1,273.60 an ounce.

On chart, gold rose slightly, breaching above the resistance of the 200-day moving average of $1,271.48, but still held below the resistance of $1,276. On chart, the resistance will sustain. Investors shall closely watch chart moves around this level. In case of successful breakthrough, gold might break previous rangebound and trigger an upturn trend.

 
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