Gold Firmer, $ 1300 Back on Sight ahead of US CPI, Fed Minutes
Gold
kicked-off the week on a brighter note and now extends gains for the
second straight day this Monday, on the back of poor China dataflow and a
broadly weaker US dollar.
Gold finds good support near $ 1265
Currently, gold trades +0.61% higher at 1282, having posted day’s high
at $ 1284.05 and day’s low at 1272.46. The bullion extends its bullish
run as the demand for the safe-haven appear to be on the rise, after the
weekend’s awful Chinese retail sales, industrial production and
investment data raised concerns over the demand for the yellow metal
from the world’s top gold consumer, China.
Moreover, a softer tone in the Asian equities amid resurgence of
risk-off trades towards the closing hours, also added to the upside in
the gold prices amid broad based US dollar correction. Meanwhile, the US
dollar index trades -0.08% lower at 94.52 levels, moving further away
from two-week tops reached near 95 handle.
Nothing of note for the metal in the day ahead, and hence, focus remains
on the US CPI and FOMC minutes release due later this week for fresh
direction on gold.
Gold Technical Levels
The metal has an immediate resistance at 1287/1290 (May 9 High/ round
number) and 1300 (psychological levels). Meanwhile, the support stands
at 1276.15 (10-DMA) below which doors could open for 1265.60 (20-DMA).