Gold Back in the Red Near $ 1235, US Data Eyed
The ongoing recovery mode in the yellow metal ran out of legs once again
near hourly 200-SMA above 1240 levels, and the prices retreated
sharply, despite broad based US dollar weakness.
Gold dips ahead of US data
Currently, gold drops -0.25% to 1234.71, retreating from fresh session lows reached at 1232.38 last hour. The bullion erased gains seen in the Asian hours and fell back in the red territory as a change in risk sentiment on the back of a minor recovery in the European stocks, dampened gold’s safe-haven appeal.
Next of relevance for the precious metal remains the US durable goods data, which will provide fresh direction on the USD moves, eventually impacting the dollar priced-in gold. However, the data might have limited reaction as the main market moving event for gold this week remains the FOMC decision due tomorrow. Total durable goods orders are projected to rebound 1.9% in March versus -3.0% seen last.
Gold Technical Levels
The metal has an immediate resistance at 1244.56 (1h 100-SMA) and 1250 (psychological levels). Meanwhile, the support stands at 1227 (previous lows) below which doors could open for 1200 (psychological levels).