• Firming Fed rate hike prospects prompt some aggressive selling.
• USD fails to build on post-data up-move and helps recover lost ground.
• Reviving safe-haven demand provides an additional boost.
Gold quickly reversed the US CPI-led knee-jerk fall and is now headed towards the top end of its daily trading range.
Today's strong US consumer inflation figures increased prospects for 4 Fed rate hikes in 2018 and prompted some aggressive selling around the non-yielding yellow metal. This coupled with a goodish pickup in the US Dollar demand exerted some additional downward pressure on dollar-denominated commodities - like gold.
The USD, however, struggled to build on its post-data gains and helped the commodity to regain some positive traction. Adding to this, a sharp fall in the US equity markets provided an additional boost to traditional safe-haven assets and further collaborated to the precious metal's sharp intraday recovery of around $17.
Currently holding with modest gains for the third consecutive session, it remains to be seen if bulls are able to maintain their dominant position or the up-move once again meets with some fresh supply at higher level amid firming Fed rate hike expectations.
Technical levels to watch
A follow-through up-move is likely to confront resistance near $1340 level, above which the metal seems all set to challenge the $1348-50 supply zone. On the flip side, $1332 level now seems to protect the immediate downside, which if broken could accelerate the fall back towards $1326 horizontal level en-route $1318 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
EUR/USD drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
LULU stock adds 15% on big Wall Street beat
Lululemon Athletica did it again. In something that has become quite predictable, LULU stock sailed 14.9% higher in Friday’s premarket to $377.20 after the prized athleisure brand posted a nearly 15% earnings beat for the first quarter.