Gold oscillates in a range above $1250

Haresh Menghani FXStreet

• Struggles to extend the post-Fed upsurge.
• Recovering USD/US bond yields capping gains.
• US macro data eyed for fresh impetus.

Gold surrendered majority of its early gains to one-week tops and is currently placed in the neutral territory around the $1255-56 region.

The commodity struggled for a firm direction and swung from an intraday low near $1253 area to a one-week high level of $1259. A combination of factors failed to assist the commodity to build on overnight strong gains posted following the FOMC announcement.

A goodish pickup in the US Treasury bond yields helped ease the US Dollar selling pressure and kept a lid on any additional up-move for the non-yielding yellow metal.

The downside, however, remained cushioned by a cautious opening across European bourses, which extended some support to the precious metal's safe-haven appeal.

Later during the NA session, the US economic data - monthly retail sales and initial jobless claims, might influence the USD price dynamics and eventually provide some impetus for dollar-denominated commodities - like gold.

Technical levels to watch

Immediate support is now pegged near the $1253-52 region, below which the metal could slide back to $1247 horizontal support en-route $1242 level.

On the upside, momentum beyond $1259-60 area is likely to accelerate the up-move back towards the very important 200-day SMA hurdle near the $1267-68 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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