Gold Drops Further to Test 50-DMA, US Data in Focus
Gold prices accelerated to the downside over the last hour as the USD recovery gained traction in Europe, as focus now turns towards the US economic releases.
Gold heavily sold-off into Fed rate hike bets
Currently, gold drops -0.46% to 1216.92, having tested 50-DMA located then at 1214.85. The yellow metal keeps the negative bias intact as markets bid up the US dollar against the backdrop of better-than expected US jobs data, which brought June Fed rate hike bets back on the table.
More so, a relief rally seen in the European indices also dulls gold’s safe-haven appeal and thus, keeps the metal pressured. The European indices are up 0.50% to 1.20% s0 far this session.
Looking ahead, markets now await the US datasets due for release later in the US session, including the factory orders and Fed’s labour market conditions index, which may have major impact on the USD moves, and eventually on the dollar-priced in precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1226/27 (5 & 10-DMA) and 1235 (round number). Meanwhile, the support stands at 1214.85 (50-DMA) below which doors could open for 1208/07 (previous lows).
(Market News Provided by FXstreet)