Gold remains capped below $1315-16 supply zone, US CPI in focus

   •  Dovish Fed expectations continue to lend support and limit downside.
   •  Renewed USD buying/risk-on mood seemed to cap further up-move.
   •  Traders eye US consumer inflation figures for some meaningful impetus.

Gold held on to its mildly positive tone through the early European session, albeit struggled to make it through the $1314-16 immediate supply zone.

Having found decent support ahead of the key $1300 psychological mark earlier this week, the precious metal traded with a positive bias for the fourth session in the previous five and remained supported by growing market expectations that the Fed was in no hurry to tighten rates further.

However, a combination of negative forces - renewed US Dollar buying interest and the prevalent risk-on mood, which tends to dent demand for traditional safe-haven assets, kept a lid on any strong follow-through up-move for the dollar-denominated commodity.

The US President Donald Trump's overnight comments, saying that he could let the March 1 tariff deadline to slide for a while, fueled optimism over a breakthrough in the US-China trade talks and continued boosting investors’ appetite for riskier assets - like equities. 

Meanwhile, the greenback stalled its overnight corrective slide and regained some traction during the early European session on Wednesday, which further collaborated towards capping any meaningful up-move for the commodity, at least for the time being.

Moving ahead, today's US economic docket, highlighting the release of the latest consumer inflation figures, might influence Fed rate hike expectations and eventually provide some meaningful impetus for the non-yielding yellow metal later during the early North-American session.

Technical levels to watch

On a sustained move beyond the mentioned barrier, the commodity is likely to head towards testing the $1321 supply zone before eventually darting to multi-month tops, around the $1326 region. On the flip side, the $1307-06 region, followed by the $1302-$1300 region might continue to protect the immediate downside, which if broken might prompt some additional weakness further towards $1295-93 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling at the lows ahead of US GDP

EUR/USD is trading in the low 1.1100s, consolidating its losses. Markets are stalling ahead of the all-important US GDP report which carries high expectations. Some suspect a "sell the fact" response in reaction to an OK number.

EUR/USD News

GBP/USD recaptures 1.2900 amid the Brexit impasse, ahead of US GDP

GBP/USD is trading slightly above 1.2900, recovering the lost ground after hitting two-month lows. The Brexit impasse weighs as the main parties have not made progress. The anticipation to US GDP limits movements.

GBP/USD News

USD/JPY oscillates in a range above mid-111.00s, key US GDP report awaited

The USD/JPY pair failed to capitalize on the intraday bounce and quickly retreated around 15-20 pips from daily tops touched during the Asian session.

USD/JPY News

US First Quarter GDP Preview: Reasons to be cheerful

US economic growth forecast to be stable in the first quarter. Improved consumer attitudes and retail sales give reason for optimism. Labor market key to economic growth.

Read more

Gold climbs to 1-1/2 week tops, back above $1280 level ahead of US GDP

Gold edged higher on the last trading day of the week and jumped back above $1280 level, just above over one-week tops set in the previous session.

Gold News

majors

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •