Gold trading with mild bearish bias around $1225 level
|Gold traded with bearish bias on Wednesday and has now reversed previous session's tepid gains amid growing expectations of faster Fed rate-hike action in 2017.
Currently trading around $1225 region, Tuesday's hawkish comments from the Fed Chair Janet Yellen, during the semiannual testimony before the Senate Banking Committee, has put the possibilities of a March Fed rate-hike move back on the table.
Yellen's hawkish stance drove US Treasury bond yields higher and is seen weighing on the non-yielding yellow metal. Moreover, positive comments over the US labor market strength and inflation outlook provided an additional boost to the US Dollar and eventually denting demand for dollar-denominated commodities - like Gold.
Meanwhile, improving investors' risk-appetite, as depicted by upbeat sentiment around riskier assets - like equities, is further driving flows away from traditional safe-haven assets and collaborating to the yellow metal's downslide on Wednesday.
Later during NA session, the US macro releases – CPI print and monthly retail sales, followed by the Fed Chair Janet Yellen's appearance before the House of Representatives Financial Services Committee, would now be looked upon for fresh impetus for the metal’s near-term direction.
Technical levels to watch
A follow through retracement below $1220 level is likely to drag the commodity back towards 100-day SMA support near $1217 region below which the downslide could get extended towards $1210 horizontal support ahead of $1200 psychological mark.
On the flip side, momentum above $1230 level now seems to confront immediate resistance near $1233-35 region, which if cleared is likely to boost the metal back towards recent daily closing highs resistance near $1240-42 resistance area, en-route multi-month highs resistance near $1245 level.
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