Gold finds support near $ 1220, US CPI eyed

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Gold futures on Comex snapped a two-day rally and fell back into losses on Friday as the US dollar regained lost ground against its major rival ahead of the US inflation report.

    Gold indifferent to risk-off trades

    Currently, gold drops -0.25% to 1223, retreating from fresh session lows reached at 1220.70 some minutes ago. The yellow metal met fresh supply after the greenback witnessed a renewed spurt of buying interest over the last hours as markets resort to repositioning ahead of the crucial US CPI report, which is expected to spur trading activity.

    Further, the gold failed to garner support from subdued trading seen on the European equities as the slowing physical demand for gold in the world’s top consumers continue to dent the sentiment.

    Gold Technical Levels

    The metal has an immediate resistance at 1227.59/1230 (1h 20-SMA/ round number) and 1239.20 (Feb 18 High). Meanwhile, the support stands at 1219.55 (10-DMA) below which doors could open for 1212 (1h 100 & 200-SMA).
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