- Gold struggled to capitalize on the early uptick amid renewed USD buying interest.
- The USD held on to its gains following the release of US consumer inflation figures.
- A cautious mood in the equity markets helped limit losses for the safe-haven metal.
Gold struggled for a firm direction and remained confined in a range, around the $1855 region through the early North American session.
A combination of diverging factors failed to assist the commodity to build on the previous day's positive move and led to a subdued/range-bound price action, below 50-day SMA. The early uptick once again ran out of the steam near the $1862-63 region, ahead of the 50-day SMA hurdle, though the pullback lacked any strong follow-through selling.
The US dollar regained positive traction amid a modest bounce in the US Treasury bond yields, which, in turn, was seen as one of the key factors that capped gains for the dollar-denominated commodity. In fact, the yield on the benchmark 10-year US government bond stalled its retracement slide from a 10-month high hit on Tuesday and helped revive the USD demand.
Meanwhile, the greenback has a rather muted reaction and moved little following the release of the latest consumer inflation figures. The headline CPI matched consensus estimates and came in to show a 0.4% MoM rise in December. The yearly rate increased by 1.4% as against 1.3% anticipated, though did little to impress the USD bulls.
That said, indications of a cautious opening in the US equity markets extended some support to the safe-haven XAU/USD and helped limit any deeper losses, at least for the time being. This makes it prudent to wait for a sustained move in either direction before positioning for any meaningful intraday trading opportunities.
Technical levels to watch
|Today last price||1859.06|
|Today Daily Change||3.14|
|Today Daily Change %||0.17|
|Today daily open||1855.92|
|Previous Daily High||1863.83|
|Previous Daily Low||1836.74|
|Previous Weekly High||1959.42|
|Previous Weekly Low||1828.27|
|Previous Monthly High||1906.87|
|Previous Monthly Low||1775.52|
|Daily Fibonacci 38.2%||1853.48|
|Daily Fibonacci 61.8%||1847.09|
|Daily Pivot Point S1||1840.5|
|Daily Pivot Point S2||1825.07|
|Daily Pivot Point S3||1813.41|
|Daily Pivot Point R1||1867.59|
|Daily Pivot Point R2||1879.25|
|Daily Pivot Point R3||1894.68|
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