Gold Attempts a Tepid Bounce Towards $ 1270
The yellow metal stalled its selling spiral and now makes fresh recovery
attempts from 1266 lows, despite broad based US dollar strength and a
slightly hawkish BOE documents.
Gold holds above 20-DMA support
Currently, gold trades
-0.76% lower at 1267.65, recovering slightly from fresh session lows
truck at 1266.02 in the last hour. The bullion attempts a tepid-bounce
after the US dollar consolidates near session tops against its major
competitors, as markets absorb the latest BOE policy statement.
While the gold prices look vulnerable on the back of persistent risk-on
rally in the European equities, with a slightly optimistic BOE over its
economic outlook, despite consequences of EU referendum, offering some
support to the region’s stock markets
.
Looking ahead, markets now await the US unemployment claims data and Fed
speaks due later in the NY session for further momentum on the prices.
Gold Technical Levels
The metal has an immediate resistance at 1279.46 (10-DMA) and 1287/90
(May 9 High/ round number). Meanwhile, the support stands at 1261
(20-DMA) below which doors could open for 1250 (psychological levels).
