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Gold turns lower, hits intraday low around $1230

   •  Signs of stability in equity markets prompt some fresh selling.
   •  The USD pares early losses and added to the downward pressure.
   •  Investors now eye US macro data for fresh directional impetus.

Gold reversed an early uptick back closer to over three-month tops and drifted into negative territory during the early European session.

The overnight slump in the US equity markets had a spill-over effect on the Asian equity markets and underpinned the precious metal's safe-haven status at the start of Thursday's trading session.

The up-move, however, once again failed to make it through the $1239-40 region, with some signs of stability returning back to financial markets prompting some fresh selling since the early European session.

Adding to this, the US Dollar has also managed to recover a major part of its early lost ground and was seen exerting some additional downward pressure on the dollar-denominated commodity. 

Moreover, investors also seemed reluctant to place any aggressive bullish bets amid firming prospects for a gradual Fed rate hike move beyond 2018, which tends to dampen demand for the non-yielding yellow metal.

Moving ahead, this week's important US macro data, starting with today's release of durable goods orders and advance GDP growth figures on Friday, will now play a key role in determining the near-term trajectory.

Technical levels to watch

Any subsequent fall is likely to find support near the $1226 area, below which the corrective slide could further get extended towards 1220 level en-route the $1215 region. On the flip side, the $1239-40 region remains an immediate strong hurdle, which if cleared should lift the commodity further towards $1250 supply zone.
 

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Haresh Menghani

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

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