Gold climbs to near 3-week tops amid weaker USD
| • Persistent USD weakness underpins demand.
• Rising inflation expectations supportive.
Gold climbed for the fourth day in a row and is currently placed at the highest level in nearly three weeks, around the $1355 region.
Spot prices quickly reversed a knee-jerk fall to an intraday low level of $1317 on Wednesday and gained strong positive traction amid renewed US Dollar weakness, which tends to underpin demand for dollar-denominated commodities - like gold.
A positive beat to the US CPI print, although fueled expectations that the Fed might opt for a faster pace of interest rate hikes this year, further benefitted the precious metal as a hedge against accelerating inflation and remained supportive of the up-move.
Today's modest uptick could also be attributed to some follow-through technical buying, especially after yesterday's bullish break through $1348-50 supply zone. Hence, it would be prudent to wait for a follow-through buying interest before positioning for additional near-term gains.
Later during the NA session, second-tier US economic releases seem unlikely to act a major game changer but might still be looked upon for some short-term trading impetus.
Technical levels to watch
Immediate resistance is pegged near $1358 level, above which the metal seems all set to head back towards $1366 area (2018 high) before eventually darting towards its next major hurdle near the $1374-75 region.
On the flip side, the $1350-48 region now seems to protect the immediate downside, which if broken might prompt some additional profit-taking slide back towards $1340 horizontal support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.