Gold Firmer, $ 1300 Back on Sight ahead of US CPI, Fed Minutes

Gold Firmer, $ 1300 Back on Sight ahead of US CPI, Fed Minutes

16 May 2016, 11:24
Roberto Jacobs
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Gold Firmer, $ 1300 Back on Sight ahead of US CPI, Fed Minutes

Gold kicked-off the week on a brighter note and now extends gains for the second straight day this Monday, on the back of poor China dataflow and a broadly weaker US dollar.

Gold finds good support near $ 1265

Currently, gold trades +0.61% higher at 1282, having posted day’s high at $ 1284.05 and day’s low at 1272.46. The bullion extends its bullish run as the demand for the safe-haven appear to be on the rise, after the weekend’s awful Chinese retail sales, industrial production and investment data raised concerns over the demand for the yellow metal from the world’s top gold consumer, China.

Moreover, a softer tone in the Asian equities amid resurgence of risk-off trades towards the closing hours, also added to the upside in the gold prices amid broad based US dollar correction. Meanwhile, the US dollar index trades -0.08% lower at 94.52 levels, moving further away from two-week tops reached near 95 handle.

Nothing of note for the metal in the day ahead, and hence, focus remains on the US CPI and FOMC minutes release due later this week for fresh direction on gold.

Gold Technical Levels

The metal has an immediate resistance at 1287/1290 (May 9 High/ round number) and 1300 (psychological levels). Meanwhile, the support stands at 1276.15 (10-DMA) below which doors could open for 1265.60 (20-DMA).


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