Gold eases-off 2-week highs, back near $ 1215
|- The US dollar bounce caps the upside in gold, what’s next?
- Downbeat US CB consumer confidence data to refuel the recovery-rally.
Gold futures on Comex entered into a consolidative near $ 1216 region heading into Europe, having hit fresh two-week highs at $ 1218.90.
The retreat in the yellow metal is mainly driven by broad-based US dollar bounce from three-week lows of 94.68, as risk sentiment got boosted on optimism fuelled by the US-Mexico trade deal. Moreover, the renewed selling in the Chinese Yuan on the PBOC move also helped put a bid under the US dollar.
Despite the latest leg lower, the precious metal keeps the bullish momentum intact amid flattening of the US yield curve, which could cap the dollar recovery. Further, a dip in the US CB consumer morale could offer a fresh lift to the USD-sensitive gold.
Meanwhile, Stephen Innes, Asia-Pacific trading head at OANDA in Singapore, noted: “We need a complete flip around momentum in the U.S. dollar for gold to push above $1,230 and move to $1,260. Unless the Fed takes the December rate hike off the table, gold does not have a chance to get near any of those supportive levels.”
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.