Gold surrendered majority of its early gains and has now retreated back to $1330 level, despite renewed concerns over geopolitical risks.
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.
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.
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.