Gold Recovers Losses, but Hawkish Fed Speak Caps Gains
Gold managed to recovery losses, but is having a hard time turning positive on the day as Fed’s Bullard joined “rate hike could happen sooner” bandwagon.
Hovers around $1220/Oz
Prices recovered from the one-month low of $1212.31 printed earlier today after the durable goods orders figure missed estimates and pointed to a bump in the manufacturing sector recovery.
Meanwhile, preliminary services PMI for March printed lower than estimates, but received little attention from the metal traders. Volumes may drop now as Europe is heading into an extended weekend.
Gold Technical levels
The immediate support is seen at $1200 handle, under which the losses could be extended to $1193.49 (38.2% of Dec low-Mar high) - $1191.53 (Oct 15 high). On the other hand, a break above $1127 (23.6% of Dec low-Mar high) could see the metal have a re-look at $1240.50 (Mar 21 low).
(Market News Provided by FXstreet)