Gold Slumps to Fresh 8-Week Lows Below 100-DMA, US GDP, Yellen Eyed
The bears appear relentless in the Asian trades, slamming the bullion further into the negative territory as Fed officials continue to talk up chances of an early Fed rate hike, suggesting a June lift-off.
Gold: Looks to test $ 1200 – psychological levels
Currently, gold sinks -0.75% to fresh eight-week lows of 1213.54, falling like knife from 1216 levels. The yellow metal ran through fresh offers last minutes and drops sharply as fresh bids in the USD/JPY pair indicates improving risk-on trades and hence, weighs heavily on the safe-haven gold.
Moreover, the US dollar caught a renewed bid-wave and jumped higher across the board as the Asian traders continue to digest hawkish speeches from the Fed officials delivered lately, especially the one from Fed’s Powell, suggesting that Fed should raise rates ‘fairly soon’. Meanwhile, the US dollar index gains +0.09% to trade around 95.25, recovering from 95.07 lows.
In the day ahead, the US GDP numbers and Fed Chair Yellen’s speech will shape up next moves in the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1216.36 (100-DMA) and 1220/23 (round number/ daily high). Meanwhile, the support stands at 1207 (key support) below which doors could open for 1200 (psychological levels).