Gold is higher in Asia-Pac trade on............>

GOLD: Gold is higher in Asia-Pac trade on Thursday, the yellow metal last up

$3.00 at $1298.18. Gold rose steadily throughout the session Wednesday and has

added to those gains on Thursday, this would denote the 6th successive day of

gains which is the longest winning streak for gold in 2 months. New sanctions

imposed by the US on North Korea this week helped support gold, while US yields

dropped sharply and the yield curve flattened heavily yesterday which also

supported the safe haven. Also boosting bullion is the continued decline of the

US dollar index (DXY), dropping to 92.893 during the Asia session to touch a

3-week low. This, coupled with the 2-/10-Year spread narrowing in year end

rebalancing to just shy of a 10-year low at 52bp has taken gold to within

touching distance of the psychological $1300 level.

- MNI technical analysis sees support at $1281.5 - Low Dec 27, resistance is

seen at $1289.5 - Monthly High Dec 1. The recovery from Dec lows has resulted in

closes above the 55-DMA and bear channel top with immediate focus on $1289.5.

Bulls look for a close above this level to hint at a move back to the

$1306.0-1320.0 region.