Gold Builds on Overnight Gains, Spikes to $ 1330

Gold Builds on Overnight Gains, Spikes to $ 1330

1 July 2016, 06:39
Roberto Jacobs
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Gold Builds on Overnight Gains, Spikes to $ 1330

Gold extended its three-day winning streak and spiked higher over the last hour, heading for its fifth straight weekly gains, as the greenback turned negative across the board amid risk-on market profile.

Gold holds above 5-DMA support at $ 1320.80

Currently, gold trades +0.349% higher at $ 1328.10, having posted day’s high at 1329.83 and day’s low at 1320.59. Gold prices remained firmer this session, building onto the overnight gains on the back of a broad based retreat in the US dollar, despite upbeat US macro updates.

The bullion rose on the final trading day of the week as the USD weakness outweighed the persistent risk-on trades seen in the global equities. Moreover, the recent upmove can be attributed to the dismal Chinese manufacturing PMI reports released last hour, with the Caixin report missing estimates and contracting further in June to hit fresh four-month lows.

Moreover, renewed talks of easing by the global central banks in wake of the Brexit vote, also boosts the demand for gold as an ultimate store of value. Looking ahead, the yellow metal will continue to track the broader market sentiment amid Brexit headlines ahead of the US manufacturing sector activity reports due later in the NY session.

Gold Technical Levels                                  

The metal has an immediate resistance at 1333.63 (Jun 27 high) and 1340 (round number). Meanwhile, the support stands at 1320.59 (5-DMA) below which doors could open for 1312.69 (Jun 30 low).

Gold extended its three-day winning streak and spiked higher over the last hour, heading for its fifth straight weekly gains, as the greenback turned.


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