Gold Halts 3-Day Slide, Rebounds in Asia Near $ 1255
Gold kicked-off
the week on a stronger footing and ticker higher in the Asian trades
amid tumbling Japanese stocks and a moderately lower US dollar across
the board.
Gold eyes $ 1260
Currently, gold trades 0.19% higher at 1254.55, having posted day’ low
at 1251.11 and day’s high at 1256.14. The bullion attempts a tepid
bounce in Asia from three-week lows, after having dropped nearly 2% last
week on increasing expectations that the Fed may hike rates as soon as
next month. Gold is a non interest bearing investment assets and could
suffer from the rise in the US interest rates.
The ongoing recovery attempt can be also attributed to the bullish CFTC
report released last Friday, which revealed Hedge funds and money
managers raised their bullish bets in COMEX gold futures and options in
the week to May 17. Adding to the upbeat sentiment around gold, Holdings
in SPDR Gold Trust, the world's largest gold-backed exchange-traded
fund, rose 1.04 percent to 869.26 tonnes on Friday, the largest since
November 2013.
Nothing of significance for gold in the day ahead and hence focus shifts
towards the crucial US economic data and Fed Yellen’s speech due later
this week.
Gold Technical Levels
The metal has an immediate resistance at 1260 (round figure) and 1266
(20-DMA). Meanwhile, the support stands at 1250 (psychological levels)
below which doors could open for 1243.81 (May 19 Low).
