Gold soars to fresh 2-week high

  • Gold prices changed course after Wall Street's reverse three-digit slump.
  • USD sell-off backing base metals' recovery

Spot gold trades above $1,347.00 a troy ounce, reversing an early slump to 1,317.37, achieved after the release of US inflation. The numbers fueled panic selling amid concerns over US rates rising at a faster than convenient pace. Gold followed suit, as higher rates in the US usually make the safe-haven metal less attractive. Gold remains near its daily highs, with financial assets stabilizing after the wild rides seen early US session.

Levels to watch

Gold came back after bottoming near the 50% retracement of its December/January rally, now trading above the 23.6% retracement of the same advance at 1,335.35, providing a major support for the upcoming sessions, ahead of the 1,327.00 region.

 February high at 1,350.95 is the immediate resistance now ahead of 1,356.99, the high posted on Jan. 26. Above the level, the metal has scope to extend its advance up to 1,366.00 the multi-month high set last January. 

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