Gold Rejected at 1HR 50-SMA, but Holds 100-DMA Ahead of US GDP
The recovery in the yellow metal from eight-week troughs faltered at hourly 50-SMA located near 1123.50, and from there the spot now reverts towards 100-DMA resistance-turned support at 1216.40.
Gold holds 100-DMA support
Currently, gold drops -0.30% to 1218.35, having faced strong offers at 1223.58, session highs. The bullion made a minor-recovery attempt over the last hours, although failed to sustain the same as the European stocks flipped to gains and dampened gold’s safe-haven appeal.
Moreover, a pick-up in buying interest around the greenback as compared to its major competitors, also capped the pullback in the gold prices. Meanwhile, the US dollar index gains +0.15% to 95.28, hovering close to daily highs posted at 95.32.
All eyes now remain on the second estimate of the first quarter US GDP report and consumer sentiment data, which are expected to provide fresh hints on the strength of the US economic recovery and eventually on the Fed rate hike prospects for this year. While Fed Chair Yellen’s remarks will be also closely heard for further momentum on the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1223.58 (Daily high/ 1h 50-SMA) and 1230 (round number/ daily high). Meanwhile, the support stands at 1207 (key support) below which doors could open for 1200 (psychological levels).