Gold firmer on risk-off, but stays below $ 1230
Gold prices on Comex keep the recovery mode intact for the third straight session, although the struggle continues with $ 1230 barrier, despite widespread risk-aversion and a non-event FOMC minutes release.
Gold regains 200-DMA at $ 1225.42
Escalating geo-political tensions surrounding the North Korean missile launch, puts China and Russia against the US, which has weighed down heavily on the investors’ sentiment, keeping the safe-haven bids for the yellow metal underpinned.
Moreover, gold also benefited overnight, as the FOMC minutes lacked any hawkish bias, with the Fed officials divided on when to start the balance sheet normalization process and on a Dec rate hike. The Fed members also expressed their concerns on softening inflation outlook.
Meanwhile, the bulls need a decisive break above $ 1230 barrier for the ongoing recovery to extend further, and hence, traders await the US ADP jobs report and ISM services PMI data for the next near-term direction.
Gold: Technical levels
Higher Side: 1230 (round figure), 1237.25 (10-DMA), 1245.80 (20-DMA)
Lower Side: 1223.37 (daily low), 1216.50 (multi-week troughs), 1210 (key support)
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