Gold: Bull eyeing a test of 200-DMA ahead of US data
|Gold prices on Comex are consolidating the latest upmove to fresh multi-month highs in the Asian session this Friday, as the bulls gather pace for the next leg higher.
Gold cheers reduced odds of a March hike
Currently, gold trades marginally lower at $ 1250, aiming for a retest of three and a half month highs reached yesterday at $ 1252.05. Gold rallied hard yesterday as markets cheered the Fed minutes, which revealed reduced expectations of a March rate hike and boosted the non-interest bearing gold at the expense of the treasury yields and US dollar.
Moreover, gold also benefited from uncertainties surrounding Trump’s administration policies, after Treasury Secretary Mnuchin’s raised doubts over the impact of Trump’s policies on the US economic growth this year. At the same time, his comments also raised uncertainty of over progress towards US tax reform
Looking ahead, the yellow metal may take cues from the risk-trends ahead of the US datasets, including the new home sales and revised UoM consumer sentiment, due to be reported in NA session.
Comex Gold Technical Levels
The metal has an immediate resistance at 1255 (round figure) and 1259.15 (200-DMA). Meanwhile, the support stands at 1245.53 (daily pivot) below which doors could open for 1241.53 (5-DMA).
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