- Gold regained some charm despite higher US inflation at factory levels.
- US December rate hike having little influence, already priced in.
Spot gold jumped to $1,238.52 a troy ounce as the greenback entered a selling spiral that accelerated in the US afternoon. The precious metal fell after the release of better-than-expected US PPI, but changed course as the Dollar Index plunged to its lowest in three weeks, partially amid uncertainty surrounding the US tax reform, but mostly because of EUR's bullish breakout, as the common currency weighs over 57% in the value of the DXY, which stands now around 93.64. Gold reached a key technical level, as it has been rejected from the mentioned area multiple times between October 20th and November 8th. A US Fed rate hike in December seems to have been fully priced in, with speculative interest now paying attention to other signs for direction.
Levels to watch
Beyond the mentioned daily high, the commodity has its next resistance at 1,288.36, the high set on November 8th, with the following resistance being 1,294.12, October 10th daily high. Steady gains beyond this last expose 1,305.96, October monthly high.
The first support is the 1,275.00 region, where the bright metal seems to have a comfort zone, with an acceleration below the level exposing 1,269.92, today's low and also the 200 DMA.
Support levels: 1,274.90 1,267.70 1,260.55
Resistance levels: 1,283.35 1,288.05 1,297.60
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.