Gold Off-Weekly Highs, USD Gains on Less Dovish Yellen
Gold extends its retreat from fresh one-week tops into early Europe, although remains poised to book the second straight weekly rise.
Gold ticks lower as USD index strengthens
Currently, gold trades -0.24% lower at 1235.65, having posted session highs at 1239.23 last hours. The yellow metal keeps the offered tone intact this session as the latest remarks from Fed Chair Yellen at her speech post-Wall Street close, were read as less dovish as she reiterated that the US economy remains on a solid footing and hence, calls for further rate increases this year. Gold tends to benefit in low interest rate regime as it is a non-interest paying precious metal. Meanwhile, the USD index jumps +0.13% to 94.62, near session tops.
However, mixed sentiment prevalent in the Asian stocks, despite oil price rebound, offers some support to the gold bulls, and hence, keeps the losses in check. Later today, amid a lack of fresh US economic news, FOMC member Dudley’s speech will be closely heard for more insights on the US interest rates outlook.
Gold Technical Levels
The metal has an immediate resistance at 1239.23/1240 (daily high/ round number) and 1244.12 (Mar 30 High). Meanwhile, the support stands at 1230/1229 (round number/ 5-DMA) below which doors could open for 1223.90 (50-DMA).
(Market News Provided by FXstreet)