Gold drops to session low as USD regains traction
|Having retest $1200 mark, Gold reversed daily gain and has now drifted into negative territory amid resurgent greenback buying interest.
A surprisingly stronger-than-expected US core PPI print now seems to have revived hope of higher inflationary pressure in the US economy and negated a slightly lower-than-expected monthly retail sales growth, albeit was far better-than previous months dismal growth.
Upbeat PPI reading lifted the greenback across the board, with the key US Dollar Index recovering all of its early lost ground, and is now weighing on dollar-denominated commodities - like gold. At the time of reporting the yellow metal was trading at session low, around $1191 region, still headed for third consecutive weekly gains.
Next on tap is the preliminary release of UoM Consumer Sentiment Index, which is expected to tick higher to 98.5 for January from December's 98.2. An upbeat reading on consumer confidence would provide an additional boost to the greenback's recovery move.
Technical levels to watch
A follow through selling pressure is likely to accelerate the slide back towards 50-day SMA support near $1187 below which the commodity seems drift back towards $1180 horizontal level, en-route $1172-70 strong support.
On the upside, $1200 handle remains immediate strong hurdle, which if conquered might now lift the metal beyond Thursday's 7-week high resistance near $1206 region towards testing its next important hurdle near $1215 region.
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.