Gold continues to find some buying interest around $1250 level and is holding with marginal gains, closer to session peak during early NA session.
Currently trading around $1254 region, a modest greenback retracement, with the key US Dollar Index flirting with the 101.00 handle, has been a key factor supporting demand for dollar-denominated commodities - like gold. Moreover, the prevalent cautious market sentiment, ahead of the big event risk - the US President Donald Trump's first address to a joint session of Congress, is further supporting the precious metal's safe-haven appeal.
However, rising odds of a rate increase at the Federal Reserve's March meeting, with the CME group's FedWatch Tool pricing-in 31% probability of such an action, seems to be weighing and collaborating towards restricting further upside for the non-yielding yellow metal.
Next in focus would be the US economic docket, featuring the release of prelim (second estimate) Q4 US GDP growth numbers, Chicago PMI and CB's Consumer Confidence Index, which might provide some short-term trading impetus during NA trading session ahead of Trump's speech.
Technical levels to watch
Immediate resistance is pegged near $1257 level, above which the commodity seems to make a fresh attempt towards conquering the very important 200-day SMA hurdle near $1261-62 region. A follow through buying interest should now pave way for continuation of the near-term appreciating move towards its next major resistance near $1275-77 region.
On the downside, $1250 level remains immediate support to defend, which if broken has the potential to weaken the commodity back towards $1240 horizontal support before eventually dragging it further towards $1225 important horizontal support.
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
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.