Gold holds near 9-1/2 month tops on escalating geopolitical tensions
|The global flight to safety continued driving gold prices higher for the third consecutive session, to its highest level since the US Presidential elections in November 2016.
Mounting geopolitical tension over N. Korea's new missile launch over the northern Japanese island rattled global financial markets on Tuesday and boosted the precious metal's safe-haven appeal.
Adding to this, persistent greenback selling bias, with the key US Dollar Index sinking to over 16-month lows further benefitted dollar-denominated commodities and collaborated to the yellow metal's up-move to 9-1/2 month highs.
• US Dollar depressed, 92.00 on sight
The momentum helped the commodity to build on overnight strength above a key technical level, $1300 psychological mark and reinforced that the new uptrend is more likely to get extended in the near-term.
The metal, however, trimmed some of its early strong gains and has retreated a bit to $1320 area, possibly led by some profit taking following the recent upsurge of over 3.5% from Thursday's low level of $1276.
Later during the NA session, the release of CB Consumer Confidence Index from the US would now be looked upon for some short-term trading opportunities.
• US: Consumer confidence set to decline modestly – Danske Bank
The major focus, however, would remain on the revised US GDP print and the keenly watched US monthly jobs data (NFP), which would influence Fed rate hike expectations and eventually determine the next leg of directional move for the non-yielding metal.
Technical levels to watch
A strong follow through buying interest beyond $1325 level is likely to assist the metal to retest Nov. 2016 swing highs resistance near $1337 ahead of $1342-43 resistance area.
On the flip side, any profit taking slide below $1315-14 area now seems to find support near the $1309-08 region, which if broken could extend the corrective slide back towards the $1300 handle.
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