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Gold drops and recovers after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Gold prices neared daily lows set earlier today in a knee-jerk reaction to US CPI data only to move back to pre-data level of USD 1128/Oz level.

    Weak stocks support

    Oil-led losses in the European equities and US index futures are supporting the yellow metal. Consequently, prices quickly recovered from the post data low of USD 1222/Oz levels. Meanwhile, the upside is being capped by the uptick in the treasury yields and the resulting USD strength.

    Heading into the weekend, the metal remains at the mercy of the oil driven action in the US stocks.

    Gold Technical Levels

    The immediate hurdle is seen at 1234.53 (daily high) ahead of the major resistance at 1240 (previous day’s high), above which prices could target 1263.37 (Feb 11 high). On the other hand, a breakdown of immediate support at 1220 (previous day’s low) would expose 1212 (23.6% of Dec low-Feb high), under which prices could trickle down to 1200 levels.
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