Gold managed to settle in the green on Thursday, after slumping for most of the morning, boosted by safe-haven buying amid rising tensions in Iraq and Ukraine. And analysts said the metal could gain further after having breached key technical resistance.
Bullion climbed after The New York Times reported that U.S. President Barack Obama was considering air strikes and emergency relief airdrops to help 40,000 religious minorities in Iraq, who are trapped on a mountaintop after threats by Islamic militants. A White House spokesman later would not say if air strikes were being considered.
Analysts said technical buying could further lift gold after worries about a possible escalation of the military conflict in Ukraine sent bullion prices above key resistance, including the 50-day and 100-day moving averages on Wednesday.
"That gold prices had managed to hold at the 200-day moving average, despite a couple of attempts to break the downside, could well have lured short-term players back in," said Edel Tully, precious metals strategist at UBS.