Gold retreats back to $1330 level, US macro data in focus
Gold surrendered majority of its early gains and has now retreated back to $1330 level, despite renewed concerns over geopolitical risks.
• Forex Today: markets jittery on N. Korean missile test, another day of important US macro data
North Korea fired another missile over Japan and revived the precious metal's safe-haven appeal during early Asian session on Friday. The up-move, however, turned out to be short lived and was being capped by a modest pick-up in the US Dollar demand, which capped gains for dollar-denominated commodities - like gold.
• US Dollar clings to gains near 92.00, US retail sales eyed
The greenback remained underpinned by Thursday's stronger-than-expected US CPI print for August, which seems to have raised expectations for an additional Fed rate hike action by the end of this year and kept a lid on the non-yielding metal's overnight recovery move from 2-week lows.
Against the backdrop an uptick in inflationary pressure, today's US macro releases, especially the key monthly retail sales data, might turn out to be a key determinant of the commodity's move ahead of next week's FOMC meeting.
Technical levels to watch
Bulls would be eyeing for a follow through traction beyond $1334-35 area, above which the metal is likely to dart towards $1340 level en-route its next major hurdle near the $1349-50 region.
On the flip side, $1327 level is likely to protect immediate downside, which if broken could drag the commodity back below $1320 intermediate support towards retesting $1316-15 area.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
