Gold Firmer, Re-takes $ 1270 Amid USD Weakness
The yellow metal extends its recovery mode into a second straight
session this Wednesday, benefiting from a sudden bout of risk-aversion
seen across the markets over the last hour.
Gold eyes 5-DMA at $ 1272.48
Currently, gold trades +0.39% higher at 1269.75, retreating from session highs posted at 1271.22. Demand for the safe-haven gold is on the rise in the Asian session after oil prices fell back in the red and fuelled a fresh round of risk-off trades, sending the region’s indices sharply lower.
Gold also extended gains as the US dollar took a breather across the board, stalling its five-day rally, with the DXY now declining -0.14% in a bid to test 94 handle.
Amid a lack of fresh fundamental drivers, the gold traders now shift their attention to the US retail sales data due on Friday for fresh incentives on the US dollar, eventually impacting the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1272.48 (5-DMA) and 1278 (10-DMA). Meanwhile, the support stands at 1258.75 (20-MDA) below which doors could open for 1250 (psychological levels).