Gold Breaches Hourly 200-SMA Support in Asia
The yellow metal extends weakness into a third day today, accelerating
further below the hourly 200-SMA support, amid non-existent demand for
Gold off lows, regains 50-DMA at 1232.60
Currently, gold drops -0.60% to trade at 1233.05, having posted day’s low at 1228.99 and day’s high at 1241.61. The bullion poses a minor-recovery, although remains on the back foot amid renewed optimism in the Asian markets, which boosts the demand for the higher-yielding assets at expense of the safety bets.
Moreover, the US dollar remains strongly bid against its major peers on the back of a number of hawkish Fed speaks lately, and therefore, adds to the downside pressure on gold. Meanwhile, the US dollar index jumps +0.17% to 94.97 levels.
Later today, the immediate focus remains on the US inflation figures that are expected to shed more light on the US economic progress and eventually on the Fed rate hike outlook.
Gold Technical Levels
The metal has an immediate resistance at 1240 (round number) and 1244.83 (5-DMA). Meanwhile, the support stands at 1225/23 (previous lows) below which doors could open for 1220 (psychological levels).