Gold Inches Higher Post Disappointing US Economic Data
Gold
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.
