Gold Inches Higher Post Disappointing US Economic Data
extended its bid tone after the release of disappointing Empire State
manufacturing index from the US, lifting the yellow metal to a six-day
high level of $1288.77.
According to the data released by the Federal Reserve Bank of New York, just a while ago, manufacturing activity in the New York state deteriorated sharply in May, taking the Empire State manufacturing index back below 0.00 mark after Feb. The index fell to -9.0 in May as compared to expected decline to +7.2 from 9.6 recorded in April.
Immediately after the release, USD witnessed some additional selling pressure, boosting the demand for dollar denominated commodities like Gold. The yellow metal is up over 1.0% for the day and has moved within striking distance of testing its recent closing highs resistance near $1292-93 area, which if conquered would being $1300 back into picture.
Technical levels to watch
Above $1292-93 immediate resistance, the yellow metal seems all set to move back above $1300 handle and extend its appreciating move in the near-term.
Conversely, reversal from current levels and a subsequent weakness below $1278-77 immediate support might drag the commodity below day's through support near $1272-70 area, towards testing an important confluence support near $1266-65 region.