Gold hit a one-month high as the weak dollar boosted commodity prices

The price of gold continued to rise to a one-month high on Thursday as the technical outlook was strong and the dollar fell to a four-week low. Palladium reversed earlier losses and hit a fresh 17-year high.

Analysts said the technical kinetic energy-driven gold price rose on Wednesday after gold rose above its 100-day moving average for the first time since late November.

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At 1937 GMT, spot gold gained 0.59% to settle at $ 1,294.58 an ounce, the highest of $ 1,295.21 hit since November 29. The United States in February gold futures closed up 0.45% at $ 1,297.20 an ounce.

Eli Tesfaye, senior market strategist at RJO Futures, said gold's technical graphics appear to be strong.

Technical upside is trying to break through the key psychological level of 1,300 US dollars, he said.

The dollar continued to lift to boost the price of gold, including copper and crude oil, including commodities markets also provide support for the market, traders said. Brent crude oil remained in the past two and a half years, copper prices hit a four-year peak.

As the dollar eased against a basket of currencies, the dollar index fell to its lowest level since the end of November due to the less determined economic outlook for the United States following the approval of major tax cuts.

The U.S. dollar index, which has fallen more than 9% so far this year, is set to record its biggest annual decline since 2003, helping the gold price to recover nearly 5% from a nearly five-month low of $ 1,235.92 touched in mid-December.

"Relative strength index is still at neutral level, technically there is still room for gains this round," brokerage firm OANDA said in a statement.

Palladium hit 0.10%, the highest at $ 1,072 since February 2001, to $ 1,069 at a time when supply shortages and strong demand are expected to continue driving up palladium prices.