Gold Sits at 15-month Tops Amid Broad Based USD Weakness
The gold prices keep range near fifteen-month tops, having found solid support from negative Asian equities induced risk-off trades.
Gold: $ 1300 – a whisker away
Currently, gold trades modestly flat at 1292.85, extending its retreat from fresh 15-month highs reached last Friday at 1296.72. The bullion stalled its recent upward trajectory and consolidates last week’s strong gains, with the underlying risk-off tone providing additional support to the gold bulls.
On Friday, the massive equity sell-off backed by BOJ’s surprise spurred fresh buying for the safe-haven gold and sent prices to the highest levels since Feb 2015. Moreover, dropping bets of a Fed rate hike this June dumped the US dollar in favour of the yellow metal.
Later this week, the US jobs data, including the crucial NFP figures, will be closely watched for fresh moves on the dollar priced-in gold. While markets now await the US ISM manufacturing PMI due later today for further momentum.
Gold Technical Levels
The metal has an immediate resistance at 1300 (psychological levels) and 1345 (July 2014 levels). Meanwhile, the support stands at 1280 (round figure) below which doors could open for 1268 (5-DMA).