Gold sits at 2-1/2 week tops, closer to $1300 mark ahead of key US macro data

Haresh Menghani FXStreet

Gold extended its recovery move from near two-month lows, touched last Friday, and was seen inching back closer to the $1300 handle.

The precious metal rose for the sixth consecutive session on Friday and remained supported by a mildly weaker tone around the US Dollar, despite upbeat incoming US economic data.

The latest FOMC meeting minutes revealed policymakers' concerns over low inflation trajectory was seen putting pressure on the greenback and eventually benefitting dollar-denominated commodities - like gold.

• Fed’s Bostic: Not sure if Fed will hike in December – BBG TV

However, data released on Thursday indicated underlying strength in wholesale inflation. Hence, investors now look forward to the key US consumer inflation data in order to gauge the likelihood of gradual Fed rate tightening cycle.

Should today's headline CPI print confirm that the inflation is indeed rising faster, it would revive hopes for additional Fed rate hike moves, even beyond December meeting, and weigh heavily on the non-yielding yellow metal.

Today's US economic docket also features the release of monthly retail sales data, which should also a key role in determining the next leg of directional move for the commodity.

• US: Key events ahead - Barclays

Technical levels to watch

On a sustained move beyond $1300 mark, the metal is likely to dart towards the $1308-10 region en-route its next hurdle near $1315 area. On the flip side, immediate support is pegged near $1293 level, below which the commodity could skid back to $1286-84 horizontal support ahead of $1281 level.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.