Gold Inches Closer Towards Key Resistance, US Data in Focus

Gold Inches Closer Towards Key Resistance, US Data in Focus

31 May 2016, 05:01
Roberto Jacobs
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Gold Inches Closer Towards Key Resistance, US Data in Focus

Gold staged a solid comeback from three-month lows in the previous session and now builds onto the recovery towards 100-DMA & 5-DMA confluence located around 1217.50 region.

Gold manages to hold above weekly 100-SMA

Currently, gold now rises +0.30% to 1213.30, having posted day’s high at 1214.44 and day’s low at 1209.84. The bullion is seen reversing a spike to daily high, although remains strongly underpinned amid extended broad based USD correction, as markets resort to profit-taking ahead of a fresh batch of US economic releases due later today, which includes Fed’s preferred inflation gauge and the US consumer confidence numbers. Meanwhile, the US dollar index corrects -0.17 lower to trade around 95.55 levels, extending its retreat from near 96 handle.

Moreover, the ongoing recovery phase faces strong hurdle at key resistance zone near 1218 level, while rising treasury yields and favorable risk tone prevalent in the markets also keeps the prices in check.  

Gold Technical Levels                                   

The metal has an immediate resistance at 1217/18 (5 & 100-DMA) and 1220 (round number). Meanwhile, the support stands at 1211.50/1210 (1h 50-SMA) below which doors could open for 1200 (key support).


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