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Gold holds modest weekly gains ahead of key US data

Gold ticked higher on Friday but lacked any strong momentum and was seen consolidating overnight sharp reversal from closer to weekly tops. 

 

Currently hovering around $1218 region, a mildly weaker tone surrounding the US Dollar was seen lending some support to the dollar-denominated commodity. Adding to this, the prevalent cautious environment provided an additional boost to the yellow metal's safe-haven appeal and collaborated to a minor up-tick on the last trading day of the week. 

 

   •  US Dollar on the defensive near 95.50, US CPI eyed

 

The up-move, however, was tepid and lacked any strong conviction as investors preferred to remain on the sidelines ahead of key US economic data. Nevertheless, the metal has held on to modest weekly gains for the first time in the previous three. 

 

With the Fed Chair Janet Yellen's remarks, during her semi-annual testimony on Wednesday and Thursday, indicating gradual rate tightening cycle, today's US macro data - monthly retail sales and inflation figures, would be looked upon for prospects of any additional rate hike action by the end of 2017 and eventually determine the next leg of directional move for the non-yielding metal.

 

   •  US: Headline CPI likely to have risen 0.1% mom in June – Deutsche Bank

 

Technical levels to watch

 

Momentum above $1220 immediate resistance might continue to face some fresh supply near $1225-26 area. A convincing break through the mentioned resistance, a bout of short-covering has the potential to continue boosting the metal back towards the very important 200-day SMA hurdle near $1231-32 region.

 

Alternatively, weakness below $1215 level could get extended towards multi-month lows support near $1207-05 region, below which the commodity seems vulnerable to aim towards testing the $1200 handle.

 

Check the website for more information: https://freshforex.com/analitics/news/all/finnews_1420190.html

 

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