Gold Regains Poise, Hits Fresh 4-Week Highs Above $ 1260
regained control over the last hours and drove the prices to the
highest levels since mid-March, as the US dollar ran through fresh
offers and fell to fresh multi-month lows against its major rivals.
Gold rises for the 4th straight session
Currently, gold trades 0.14% higher at 1259, retreating slightly from fresh monthly highs reached at 1262.77 post-European open. The bullish momentum in the bullion regained traction after the US dollar came under renewed selling pressure as markets continue to mull over increasing uncertainty over the Fed rate hike outlook. The CME Fed Watch tool that tracks the Fed funds futures, on which traders bet to gauge the direction of US interest rates, showed 49% odds for a Fed rate increase by December from the current target range of 0.25%-0.50%, from 58% a week ago.
While a lack lustre trading on the European stocks also fuelled the demand for the safe-haven gold. Most major European indices trade with moderate gains, despite a rebound in the oil prices.
Markets now await the US import prices data for fresh cues on the USD ahead of the Chinese trade data due for release tomorrow.
Gold Technical Levels
The metal has an immediate resistance at 1266.94 (Mar 18 High) and 1270.93 (Mar 17 High). Meanwhile, the support stands at 1250 (round number) below which doors could open for 1243.63 (5-DMA).
(Market News Provided by FXstreet)