Gold consolidates the downside amid fresh USD buying

Dhwani Mehta FXStreet

Gold snapped previous losses and now attempts a tepid-bounce in Asia, although remains confined in a narrow range amid renewed strength seen behind the US dollar across the board.

Gold capped below $ 1270

Currently, Comex gold futures trade modestly flat at 1267.05, having posted day’s high at 1267.95 and day’s low at $ 1265.50. Gold prices stall the downslide and reverse a minor portion of yesterday’s losses, as the safe-haven demand for gold returns to markets amid weaker Asian stocks and oil prices.

However, the recovery lacks follow-through as rising treasury yields continue to dampen the demand for gold as an alternative investment attempt, while drive the greenback higher against its major peers, further weighing on the dollar-sensitive bullion.

Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.49% to 942.59 tonnes on Wednesday.

All eyes now remain on the US durable goods, jobless claims and pending home sales data for fresh hints on the US economic outlook, which will eventually impact Fed’s interest rate decision.

Comex Gold Technical Levels

The metal has an immediate resistance at 1270 (round figure) and 1274 (Oct 26 high). Meanwhile, the support stands at 1259.87 (20-DMA) below which doors could open for 1250 (round figure).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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