Gold Struggling to Extend Recovery Momentum Above $1270
The precious metal's attempted recovery from day's through failed to
gain momentum despite of higher-than-expected weekly US jobless claims
data. The yellow metal, however, has rebounded from session low near
$1265 level touched in the last hour to currently trade above $1270
level.
Global risk-on sentiment also seems to hurt Gold
prices as even weak US dollar doesn't seem to assist the precious
metal. Although the metal has bounced off 20-day SMA support, touched
earlier this week, upside, however, remains capped at $1280 important
pivot point.
Going forward, markets would now look ahead to speeches from FOMC
members during the NY session, which could assist traders to determine
further momentum for the precious metal.
Technical levels to watch
On the immediate upside, $1278-80 area remains immediate resistance to
watch for. A clear strength above $1280 is likely to attract fresh bids,
lifting the metal to $1287-88 horizontal resistance.
On the flip side, day's through near $1265-66 zone, followed by 20-day
SMA near $1261-60 zone, are key support levels to defend. Failure to
hold these support levels seems to increase the metal's vulnerability to
break below weekly lows support near $1257-56 and extend its weakening
trend towards $1245-43 region support.
