FxWirePro: Gold Tests Key 1256 Level, Scope for Further Upside
- Gold retreated slightly on Wednesday as dollar firmed after better than expected US housing data supported dollar and investors remained cautious ahead of the Eurozone interest rate decision followed by ECB press conference.
- The Central Bank is not expected to make any changes to its policy, but markets are speculating on a dovish stance.
- Currently the yellow metal has retreated to trade at 1245 levels after finding resistance at 1256.Further decline is set to be limited as the support formed at 1240 is set to limit downside and push the commodity towards higher side.
- To the upside, the immediate resistance can be seen 1256, a break above this level would expose the commodity towards 1262 levels.
- To the downside immediate strong support can be seen at 1240, a break below at this level will open the door towards 1228 levels. Support levels: S1-1240, S2-1228, S3-1216 Resistance levels: R1-1256, R2-1262, R3-1270