Gold pushes higher to fresh multi-week tops above $1280

• Greenback weakens despite subdued trading action.
• Commodities outperform rivals.
• US stocks start the day on a positive note.

After closing the previous week nearly $20 higher, the XAU/USD pair preserved its bullish momentum and recently touched the highest level of the month at $1287.63. As of writing, the pair was trading at $1287.20, up 0.35%, or $4.20, on the day.

The positive mood surrounding the commodity space seems to be providing a boost for the precious metal. In fact, copper futures today reached their highest level in nearly four years. On the other hand, the broad-based selling pressure witnessed on the greenback is helping the pair push higher on Wednesday. 

The US Dollar Index, which failed to end the previous week above the 93 mark, continued to edge lower for the second straight day on Wednesday and was last seen down 0.3% at 92.55. Today's data from the United States showed that the Conference Board's consumer confidence index dropped to 122.1 in December from 128.6 in November and missed the market estimate of 128. 

In the meantime, major equity indexes in the U.S. are recording modest gains during the first half of the session and could cap the pair's upside as the positive market sentiment could hurt the demand for traditional safe-havens.

Technical outlook

The CCI indicator on the daily chart for the pair continues to float above the 100 mark, suggesting that buyers are still in control of the price action. $1300 (psychological level) could be seen as the first critical resistance. A decisive rise above that level could open the door to $1306 (Oct. 16 high) and $1313 (Sep. 29 high). On the downside, supports align at $1272 (50-DMA/200-DMA), $1265 (Dec. 22 low) and $1259 (Dec. 19 low).