Gold inter-markets: jumps to multi-week tops as USD sell-off extends

Gold extended recovery move from yesterday's sub-$1200 level and surged to 11-week high, just shy of 100-day SMA resistance near $1126 region.

Currently trading around $1122 region, the precious metal benefitted from a fresh wave of US Dollar sell-off after Wednesday's FOMC statement was perceived as less hawkish and disappointed investors hoping for clues for March rate-hike action. The not so hawkish Fed triggered another sharp leg lower for the greenback, which of late has been trading on the back foot in wake of recent comments from the new Trump administration on exchange rates

A corrective slide in the US longer-term (30-year) treasury bond yields, further collaborated to the USD weakness and is reaffirmed by the ongoing slump in the USD/JPY major. In fact, the key US Dollar Index fell to 11-week low and boosting demand for dollar-denominated commodities – like gold. 

Meanwhile, a minor up-tick in the Volatility Index (VIX), leading to a corrective slide in the broader US equity index – S&P 500, is pointing to prevalent cautious sentiment, which is further supportive for the yellow metal's up-move as investors prefer relatively safe assets at time of market turbulence and uncertainty.