Gold flirting with session tops near $1260 region
|Having posted a session low near $1250 region, gold regained traction and jumped to fresh session tops near $1260 level before retreating a bit from higher levels.
A fresh wave of greenback selling pressure, with the key US Dollar Index sliding further below the 97.00 handle to hit fresh six month lows, was seen benefitting dollar-denominated commodities - like gold. Also collaborating to the up-move was prevalent cautious investors' sentiment, as depicted by a mildly negative trading sentiment surrounding equity markets led by renewed Brexit concerns, which was seen boosting the yellow metal's safe-haven appeal.
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Meanwhile, market seems to have largely ignored a pick-up in the US 2-yr treasury bond yields, reinforcing market expectations for an eventual Fed rate-hike action in June. Rising US bond yields, which tends to weigh on the non-yielding metal, did little to stall the current up-move, albeit seems to collaborate towards capping any further up-move at least for the time being.
Later during the day, speeches from various FOMC members would be looked upon for fresh insight over the Fed's rate-tightening cycle through 2017 and eventually provide some fresh impetus for short-term traders.
Technical levels to watch
Immediate resistance is pegged near $1261 level, above which the upward trajectory seems more likely to get extended towards $1268 horizontal resistance ahead of $1275-76 important hurdle. On the downside, retracement back below $1255 level might continue to find some buying interest near $1250 level, below which the commodity seems vulnerable to head back towards retesting the very important 200-day SMA support.
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