Gold Retreats From 3-Week Highs on Profit-Taking
to sustain at multi-week peaks and retraced a part of overnight gains
in the mid-Asian trades, as a profit-taking spree hit the markets ahead
of the Chinese data due tomorrow.
Gold corrects lower in Asia
Currently, gold trades -0.20% lower at 1254.20, easing-off fresh 3-week highs posted at 1259.91 in early trades. The yellow metal ticks lower heading into the mid-Asian session, as the USD bulls jumped back into the bids, with the US dollar seen making a minor-recovery attempt from 8-month lows reached against its major rivals on Monday, amid ongoing cautiousness surrounding the US interest rates outlook. A softer greenback bolsters demand for dollar-denominated currencies.
Moreover, a better risk tone in the markets on the back of higher Japanese and Australian stocks, weighs down on the safe-haven gold. Further, markets resort to profit-taking after the recent strength, ahead of the Chinese data deluge lined up for release in the week ahead. While the US retail sales data combined with the US CPI report will be also closely monitored for fresh moves in the bullion.
Gold Technical Levels
The metal has an immediate resistance at 1259.91/60 (3-week high/ round number) and 1270.93 (Mar 17 High). Meanwhile, the support stands at 1250 (round number) below which doors could open for 1242.75 (5-DMA).
(Market News Provided by FXstreet)