Gold is seen struggling hard to extend its previous rebound into the Asian trades following upbeat Chinese CPI report, while the US dollar regains poise across the board capping further upside in the metal.
Gold supported at 5-DMA
Currently, gold trades modestly flat at 1257.53, reversing a spike to 1259.09, daily highs. Gold remains better bid as the bulls cheer better-than expected China’s CPI data, especially after a dismal Chinese trade report released a day before. China is world’s top consumer of the yellow metal.
However, the upside lacks follow-through as the US dollar jumps back on the bids against its major peers, after a brief corrective slide seen yesterday on profit-taking. The USD index trades +0.10% higher at 97.65.
All eyes now remain on the Fed speaks and a fresh set of US macro data, including retail sales and consumer sentiment, due later in the NA session for fresh incentives.
Gold Technical Levels
The metal has an immediate resistance at 1260 (round figure) and 1264.50 (200-DMA). Meanwhile, the support stands at 1250.53 (Oct 11 low) below which doors could open for 1241.36 (4-month lows).
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