Gold extends the bounce from yearly lows, nears $ 1250
- Benefits from relentless USD selling across the board.
- Bulls take a breather ahead of the API crude stockpiles report.
Gold futures on Comex staged a solid comeback from the lowest levels seen since July last year, and now looks to regain the $ 1250 mark heading into the US factory orders data.
The yellow metal’s rebound today, is mainly driven by the US dollar slide across its main competitors, as markets resort to repositioning ahead of the US Independence Day holiday and July 6 tariffs deadline.
The greenback’s decline can be also attributed to the flattening of the Treasury yield curve, the spread between the 10-year and 2-year Treasury yields, which is at the flattest since 2017.
Looking ahead, gold will continue to get influenced by the USD dynamics, as its seen losing its safe-haven status, despite risk-aversion fuelled by intensifying trade war fears.
Gold Technical Levels:
Resistances: $ 1250 (psychological levels), $ 1254.90 (previous high), $ 1260 (round number).
Supports: $ 1238.80 (yearly low), $ 1231.87 (classic S2/ Fib S3), $ 1225 (key support).
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.
