Gold holds steady below $1260, OPEC meeting in focus
|Gold struggled to build on overnight strong gains from 3-day lows but held steady and remained confined in a range below $1260 level during early European session.
The precious metal witnessed a solid come back on Wednesday after minutes of the Federal Reserve’s latest monetary policy meeting in May failed to lift market expectations for a more aggressive interest rate-hikes for the rest of 2017. Lack of clarity over the timing of next Fed rate-hike move triggered a sharp slide in the US treasury bond yields and benefitted the non-yielding metal.
This coupled with reemergence of selling interest around the US Dollar further boosted demand for dollar-denominated commodities and collaborated to the yellow metal's up-move.
The commodity, however, lacked follow through momentum amid the prevalent risk-on environment, as depicted by positive trading sentiment around equity markets.
Investors on Thursday will remain focused on any headlines coming out from the crucial major oil producers meeting, where any unexpected outcome could trigger a bout of volatility and boost the metal's safe-haven appeal.
• USD softer on Fed minutes, all eyes on OPEC meeting
Meanwhile, today's second tier economic releases from the US would also be looked upon to grab some short-term trading opportunities.
Technical levels to watch
Currently hovering around $1257-58 region, a decisive move above $1260 level is likely to lift the metal back towards multi-week highs resistance near $1264-65 region. Conversely, retracement below $1255 immediate support now seems to drag the commodity below $1250 intermediate support towards testing the very important 200-day SMA support near $1245-44 region.
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