Gold rallies hard to $1230 region, 2-week highs near 200-DMA
|Dismal US economic data helped gold to build on early up-move and spiked through $1230 level to the highest level in two weeks.
The US Dollar took another blow, and sank to fresh yearly lows near the 95.00 handle post softer inflation and monthly retails sales data, which eventually was seen boosting demand for dollar-denominated commodities - like gold.
• US Dollar in fresh YTD lows near 95.00 on poor CPI
Moreover, today's weaker data, especially easing inflationary pressure further raised scepticism over prospects of any additional Fed rate hike plan in 2017. The same is being reinforced by tumbling US Treasury bond yields and also benefitted the non-yielding precious metal.
The yellow metal jumped back to the very important 200-day SMA hurdle and is now headed for its first weekly gains in the previous three. With the US equity market set to open higher, closer to record highs, any signs of profit taking could drive investors to traditional safe-haven assets and lend additional support to the metal's strong up-move on the last trading day of the week.
Technical levels to watch
A follow through buying interest could trigger a short covering rally and lift the metal further towards its next resistance near $1240-42 horizontal zone ahead of 100-day SMA hurdle near $1247 region.
On the flip side, any pull-back now seems to find immediate support near $1226-25 region, which if broken would turn the commodity vulnerable to head back towards $1217-16 support en-route multi-month lows near $1205-04 region.
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.