Gold Retreats in Asia, but Stays Above $ 1260
Gold is seen correcting slightly lower towards 1260 levels, after having reached fresh three-week highs just before NY close as summer Fed rate hike expectations recede.
Gold: 1260 mark tested
Currently, gold now trades -0.20% lower at 1262.28, finding good support just ahead of 1260 levels. The bullion eased in the Asian trades from three-week highs as the bulls take a breather after a sharp $ 20 rise seen yesterday. Meanwhile, the USD index trades +0.15% lower at 93.45, fresh five-week lows.
The yellow metal rallied on Wednesday as traders almost priced-out a June Fed rate hike as we remain just a week away from June 15 Fed decision. The metal has surged more than 4% from Friday open as of Thursday.
Meanwhile, markets absorb weak Chinese CPI data, which also weighs somewhat on the gold prices as China is the world’s top consumer of the yellow metal.
Gold Technical Levels
The metal has an immediate resistance at 1266.30 (Jun 8 high) and 1280 (May 18 High). Meanwhile, the support stands at 1260 (round figure) below which doors could open for 1252 (5-DMA).