Gold Bounces-Off $ 1265, $ 1270 Back On Sight

Gold Bounces-Off $ 1265, $ 1270 Back On Sight

10 June 2016, 06:35
Roberto Jacobs

Gold Bounces-Off $ 1265, $ 1270 Back On Sight

Gold extends its winning streak for the third consecutive session this Friday and heads for second straight weekly rise as poor risk conditions persisting in Asia underpins the safe-haven.

Gold: supported above hourly 20-SMA at $ 1265.15

Currently, gold now trades +0.11% higher at 1267.37, having bounced-off lows just ahead of 1265 levels. The bullion keeps the bid tone intact and consolidates previous gains as investors seek safety amid falling global equities, commodity prices and US treasury yields as uncertainty mounts ahead of Fed, BOJ meetings next week, while the EU referendum also keeps the markets unnerved.

However, further upside remains capped as broad based USD rebound extend for the second day today ahead of the US consumer sentiment data due later in the NY session. Meanwhile, the USD index trades +0.11% higher at 94.20.

Gold Technical Levels                                   

The metal has an immediate resistance at 1271.75 (3-week high) and 1280 (May 18 High). Meanwhile, the support stands at 1260 (round figure) below which doors could open for 1257.30 (5-DMA).


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