CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

Gold inches higher for second straight session, US data in focus

2017-5-12 15:45:44Trading Strategies
Gold inches higher for second straight session, US data in focus

Having snapped six consecutive days of losing streak on Thursday, Gold extended its recovery move from near 2-month lows touched earlier this week and has now jumped to multi-day tops near $1228 level.


A slight deterioration in investors' appetite for riskier assets - like equities, was seen boosting the precious metal's safe-haven investment appeal. This coupled with a weaker US Dollar, primarily on the back of weaker tone surrounding the US treasury bond yields, further benefitted dollar-denominated commodities and helped the yellow metal to build on overnight gains. 


The metal is now sustaining its move back above 100-day SMA and hence, a follow through recovery, led by short-covering, now seems a distinct possibility. 


Meanwhile, today's US macroeconomic data - CPI, monthly retail sales and Prelim UoM Consumer Sentiment, would influence June Fed rate-hike expectations and eventually determine the next leg of directional move for the non-yielding commodity. 


Technical levels to watch


A follow through buying interest has the potential to lift the metal further towards weekly high resistance near $1235-36 area, above which a fresh bout of short-covering should accelerate the up-move back towards the very important 200-day SMA hurdle near $1248-50 region.


On the flip side, retracement back below $1225-24 region (100-day SMA) might continue to find some immediate support near $1218-17 area, which if broken decisively would turn the metal vulnerable to aim towards testing its next important support near $1205-04 region.