Gold meets fresh supply, hits fresh weekly lows near $ 1322
- Fresh USD buying, positive European equities weigh negatively
- Exposed to more downside risks ahead of the US data dump
Gold futures on Comex stalled its tepid recovery mode and fell back into the red zone, hitting fresh one-week lows of $ 1321.70 before recovering slightly to $ 1324 levels, where it now wavers.
The yellow metal remains under pressure for the third straight session, as easing US-China trade concerns combined with hopes of peace talks building up around the Korean peninsula dull the demand for the traditional safe-haven, gold.
Moreover, strengthening US dollar versus its major peers on the back of month/ quarter-end adjustments also collaborates to the declines in the commodity.
Meanwhile, the latest down in gold is mainly driven by a renewed buying interest seen around the US dollar, as risk sentiment improved amid strong gains on the European indices and higher oil prices.
Focus now shifts towards the US core PCE, jobless claims and consumer sentiment data for further fresh impetus on the USD-sensitive gold.
Gold Technical Levels
Gold finds the immediate support at $ 1305.31/1300 (200-DMA/ psychological levels), below which floors open for a test of $ 1250. To the flip side, the resistances are aligned at $ 1330/38 (10 & 5-DMA), $ 1356.80 (five-week tops) and $ 1364.40 (Feb high).