"Gold has come well through that (the 200-day moving average) and I would not be surprised if some of the buying we are seeing is short-covering. This is a big relief for gold bulls that, in fairly short order, we've managed to overcome that technical level," Ross Norman, director at bullion dealer Sharps Pixley, said.
"The other thing I think that is fairly significant is the Chinese story ... the imports from Hong Kong have been phenomenal," he added.
China imported nearly a fifth more gold from Hong Kong in November than the previous month, continuing a trend of sharply rising purchases that has seen bullion flows to the mainland more than treble in the first 11 months of the year.
"A record 102.525 tonnes of gold entered the mainland from Hong Kong in November, pushing the total gold flow in the first 11 months of the year to 389.295 tonnes, said the Hong Kong Census and Statistics Department."