Gold Attempts a Tepid Bounce Towards $ 1270

Gold Attempts a Tepid Bounce Towards $ 1270

12 May 2016, 13:51
Roberto Jacobs

Gold Attempts a Tepid Bounce Towards $ 1270

The yellow metal stalled its selling spiral and now makes fresh recovery attempts from 1266 lows, despite broad based US dollar strength and a slightly hawkish BOE documents.

Gold holds above 20-DMA support

Currently, gold trades -0.76% lower at 1267.65, recovering slightly from fresh session lows truck at 1266.02 in the last hour. The bullion attempts a tepid-bounce after the US dollar consolidates near session tops against its major competitors, as markets absorb the latest BOE policy statement.

While the gold prices look vulnerable on the back of persistent risk-on rally in the European equities, with a slightly optimistic BOE over its economic outlook, despite consequences of EU referendum, offering some support to the region’s stock markets
Looking ahead, markets now await the US unemployment claims data and Fed speaks due later in the NY session for further momentum on the prices.

Gold Technical Levels

The metal has an immediate resistance at 1279.46 (10-DMA) and 1287/90 (May 9 High/ round number). Meanwhile, the support stands at 1261 (20-DMA) below which doors could open for 1250 (psychological levels).


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