Gold: at bargain hunter's levels while above $1,280?

The safe-haven metal, gold, moved up on Thursday while the DXY lost some profit taking ground as the month of September heads for a close in tomorrow's US trade.

It seems as though, while the markets have priced in somewhere in the region of a three-in-five chance that the Fed will hike this December, speculators are somewhat dubious of the Fed's recent ambiguity and the recent lows in Gold are a potential bargain for bulls. After dropping to a fresh low of 1,277.66 overnight when gold slipped below $1,280 in Asia, spot gold climbed back in London and NY $10.00 to settle at $1,287.42. having made a session high of 1288.77.

Gold levels

Technically, the daily chart has the 50-D SMA at 1293.43 capping the rallies while the lows are now not far off meeting 24th Aug outside stick's long bullish wick at 1,276.11, a break of which opens 1,267 previous double-bottom area. Technical indicators have turned neutral within a negative territory. In the 4 hours chart, the price keeps developing well below all of its moving averages, with the shortest currently acting as dynamic resistance at 1,294.25 with a target back above the psychological 1,300 level. However, while above 1,280, bulls may emerge for the new month should the DXY continue to unwind, currently down -0.23% at 93.15 from 93.66 highs.