Gold continues to find support near 100-DMA support, focus remains on Yellen’s testimony
|Gold extended its slide on Wednesday's slide and dropped to nearly two-week lows after strong US economic data.
Data released from the US showed yearly inflation rate surged to the highest rate in four years during January and monthly retail sales recorded a stronger-than-expected growth in January, with an upward revision to gains for December.
Upbeat US economic data, against the backdrop of Fed Chair Janet Yellen's hawkish comments on Tuesday, lifted the key US Dollar Index to four-week highs and weighed on dollar-denominated commodities - like gold.
Moreover, stronger US economic data also triggered a fresh wave of up-move in the US Treasury bond yields, eventually denting demand for the non-yielding yellow metal and collaborated to the downslide during early NA session.
The metal, however, has managed to bounce off 100-day SMA support area and is currently trading around $1222 region as market participants now look forward to the Fed Chair Janet Yellen's second day of testimony and her comments on the central bank's monetary policy outlook.
Live speech – Janet Yellen’s testimony before the House Financial Services Committee
Technical levels to watch
On a sustained weakness below 100-day SMA support near $1217 region, the commodity is likely to head towards $1210 horizontal support before eventually dropping to test $1200 psychological mark support. On the upside, $1227 area now seems to act as immediate resistance, which if cleared could lift the metal back towards $1241 strong hurdle with some intermediate resistance near $$1235 area.
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.