Gold extends retreat further below $ 1250 as equities recover
|Gold prices on Comex are seen on the back foot so far this Thursday, with the bears fighting back control somewhat amid an improvement in risk sentiment.
Gold back below 200-DMA at $ 1246.37
Currently, gold drops -0.35% to $ 1244.95, having posted fresh three-week tops at $ 1251.45 in the US last session. A recovery staged by the treasury yields alongside the Asian equities improved risk appetite amongst investors, weighing on the safe-haven gold.
Moreover, a bout of profit-taking in the yellow metal cannot be ruled after a six-day rally, as we head towards the Trumpcare bill vote in parliament today.
Gold prices rallied hard a day before, after worries over Trump’s ability to deliver on his campaign promises combined with a terror attack on the UK Parliament heightened risk-off trades, and boosted the ultimate safety bet.
Focus now remains on the Trumpcare bill vote due late-Wednesday, in the meantime, the US jobless claims and new home sales data will be eyed for fresh incentives. Also, Fed Chair Yellen’s and Fed official Kashkari’s speech will remain in the limelight.
Comex Gold Technical Levels
The metal has an immediate resistance at 1251.45 (3-week tops) and 1258.45 (Classic R2/ Fib R3). Meanwhile, the support stands at 1240.05 (5-DMA) below which doors could open for 1239.05 (classic S2/ Fib S3).
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