Gold Flat-Lined Below $ 1270, Eyes Worst Week Since March
The gold bulls
are seen fighting hard to regain control this Friday, having booked
more than 1% loss the day earlier after the US dollar climbed across the
board on hawkish Fed speaks.
Gold faces stiff resistance at 10-DMA
Currently, gold trades modestly flat at 1267, having posted day’s high t
1269.30 and day’s low at 1265.50. The bullion wavers in an almost $5
slim range and consolidates previous losses, finding support from
worsening risk sentiment on the back of negative performance on the
Asian equities and falling oil prices.
However, the upside lacks momentum as markets remain cautious ahead of a
string of key US economic releases, including the retail sales figures,
due later tonight. While hawkish comments from Fed official Rosengren
also continue to underpin the USD at the expense of the yellow metal.
Meanwhile, the US dollar index trades 0.08% higher at 94.20 levels.
Gold Technical Levels
The metal has an immediate resistance at 1276.30 (10-DMA) and 1287/90
(May 9 High/ round number). Meanwhile, the support stands at 1262.70
(20-DMA) below which doors could open for 1256.77/50 (May 10 Low/
psychological levels).
