• The prevalent USD selling bias continues driving the commodity higher.
• Fed rate hike uncertainty beyond 2018 remained supportive of the move.
• Bullish traders seemed unaffected by improving global risk-appetite.
Gold prices edged higher on Thursday and moved within striking distance of two-week tops set in the previous session.
A combination of supporting factors helped the precious metal to regain positive traction on Wednesday and build on last week's goodish rebound from one-month lows.
Renewed US Dollar selling bias, further weighed down by disappointing US durable goods orders data, was seen as one of the key factors underpinning the dollar-denominated commodity.
Adding to this reports that the Fed might pause the rate hike cycle as early as spring 2019 provided an additional boost and lifted the non-yielding yellow metal to an intraday high level of $1230.
Meanwhile, bullish traders seemed rather unaffected by improving global risk-appetite, as depicted by a positive tone around equity markets, which tends to dampen the precious metal's safe-haven demand.
However, growing market conviction that the Fed will eventually hike rates in December might turn out to be the only factor keeping a lid on any follow-through/runaway rally for the commodity.
Market participants will be looking for any change in the Fed's forward guidance for 2019 before determining the commodity's near-term direction and placing any aggressive bets.
Technical levels to watch
Any subsequent up-move is likely to confront resistance near the $1233 level, above which the metal is likely to aim towards retesting a resistance marked by 3-1/2 month tops, around the $1243-44 region.
On the flip side, the $1225-24 region now seems to have emerged as an immediate support to defend, which if broken might accelerate the fall back towards weekly lows support near the $1218 level.
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.