Gold pauses after hitting three-week high level

June 9, 2016

Gold is seen retracing a bit from a 3-week high level of $1266 touched during Asian trading session on Thursday and is currently trading with only a marginal cut, at $1261.

Subsiding fears of an interest rate-hike by the US Federal Reserve, in the wake of last Friday’s disappointing May labor-market report, continues to drive the US Dollar lower and boosting appeal for the yellow metal. Given the slim chances of a Fed rate-hike at its monetary policy meeting on June 14-15, the precious metal gained further traction on Wednesday.

Meanwhile, weak Chinese inflation data seems to weigh on investor sentiment and prompting a profit-taking move on Thursday. Later during NA session, investors will confront the release of US weekly jobless claims that could provide some trading opportunity for gold traders.

Technical levels to watch

Although weakness below $1260 round figure might get extended but is likely to be limited at a previous strong resistance, now turned immediate strong support, around 50-day SMA near $1250-48 region. Intermediate support below $1260 is pegged near $1255 level.

Conversely, strength back above $1265 would suggest continuation of the upward trajectory with immediate upside target at $1276 ahead of key resistance near $1290-95 region.

Publication source
HYCM information  HYCM reviews

January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...
January 20, 2017
A huge disappointment in the UK data
UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...
January 20, 2017
Trump takes office today. Markets await inauguration speech
Investors await Trump's inauguration and speech due later today as he takes office as the 45th President of the United States. The U.S. dollar was seen giving up some of the gains yesterday with some volatility coming off the EURUSD on the back of the ECB meeting...

Z.com Trade Rating
FIBO Group Rating
XM Rating
Vantage FX Rating
EXNESS Rating
XTB Rating

Binary.com Rating
TopOption Rating
Dragon Options Rating
365BinaryOption Rating
UKoptions Rating
TropicalTrade Rating