support@instantforexsupport.com

Forex Broker News

avtar

Gold rallies hard to $1230 region, 2-week highs near 200-DMA

Dismal US economic data helped gold to build on early up-move and spiked through $1230 level to the highest level in two weeks.

 

The US Dollar took another blow, and sank to fresh yearly lows near the 95.00 handle post softer inflation and monthly retails sales data, which eventually was seen boosting demand for dollar-denominated commodities - like gold.

 

   •  US Dollar in fresh YTD lows near 95.00 on poor CPI

 

Moreover, today's weaker data, especially easing inflationary pressure further raised scepticism over prospects of any additional Fed rate hike plan in 2017. The same is being reinforced by tumbling US Treasury bond yields and also benefitted the non-yielding precious metal.

 

The yellow metal jumped back to the very important 200-day SMA hurdle and is now headed for its first weekly gains in the previous three. With the US equity market set to open higher, closer to record highs, any signs of profit taking could drive investors to traditional safe-haven assets and lend additional support to the metal's strong up-move on the last trading day of the week.

 

Technical levels to watch

 

A follow through buying interest could trigger a short covering rally and lift the metal further towards its next resistance near $1240-42 horizontal zone ahead of 100-day SMA hurdle near $1247 region.

 

On the flip side, any pull-back now seems to find immediate support near $1226-25 region, which if broken would turn the commodity vulnerable to head back towards $1217-16 support en-route multi-month lows near $1205-04 region.

 

Check the website for more information: https://freshforex.com/analitics/news/all/finnews_1420301.html

 

Read More

RELATED ITEMS


Do you Want Know more about Forex Brokers?