Gold Stays Near Daily Highs ahead of US Data
Gold
is trading slightly below its daily high of $1236.85 levels ahead of
the data release in the US, which could show an improvement in the
service sector output.
Focus on US data and equity markets
Metal
traders are eyeing US ISM non-manufacturing figure, which may affect
Fed rate hike bets. Meanwhile, safe haven demand for the metal may
strengthen further if the risk-off seen in Asia and Europe worsens in
US.
Moreover, the metal bounced off its 50-DMA of $1215 levels
following a bout of risk aversion in Asia and extended gains further on a
1.7% drop in Euro Stoxx 600 index. A 0.10% rise in the USD index is
doing little to cap gains in the metal.
Gold Technical Levels
The
immediate support is seen at $1215 (50-DMA), under which prices could
drop to $1200. A break lower would expose $1191.53 (Oct 15 high). On the
higher side, a break above $1240 (Feb 18 high) would shift risk in
favor of a rise to $1244.12 (Mar 30 high) and $1253.32 (Feb 24 high).
(Market News Provided by FXstreet)
