• Persistent USD weakness underpins demand.
• Rising inflation expectations supportive.
Gold climbed for the fourth day in a row and is currently placed at the highest level in nearly three weeks, around the $1355 region.
Spot prices quickly reversed a knee-jerk fall to an intraday low level of $1317 on Wednesday and gained strong positive traction amid renewed US Dollar weakness, which tends to underpin demand for dollar-denominated commodities - like gold.
A positive beat to the US CPI print, although fueled expectations that the Fed might opt for a faster pace of interest rate hikes this year, further benefitted the precious metal as a hedge against accelerating inflation and remained supportive of the up-move.
Today's modest uptick could also be attributed to some follow-through technical buying, especially after yesterday's bullish break through $1348-50 supply zone. Hence, it would be prudent to wait for a follow-through buying interest before positioning for additional near-term gains.
Later during the NA session, second-tier US economic releases seem unlikely to act a major game changer but might still be looked upon for some short-term trading impetus.
Technical levels to watch
Immediate resistance is pegged near $1358 level, above which the metal seems all set to head back towards $1366 area (2018 high) before eventually darting towards its next major hurdle near the $1374-75 region.
On the flip side, the $1350-48 region now seems to protect the immediate downside, which if broken might prompt some additional profit-taking slide back towards $1340 horizontal support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD clings to recovery gains above 0.6200, focus shifts to US ISM PMI
AUD/USD sustains the recovery from two-year troughs, holding above 0.6200 in Friday's Asian trading. The pair finds footing amid a pause in the US Dollar advance but the upside appears elusive as markets turn cautious amid China concerns and ahead of US ISM PMI data.
USD/JPY eases toward 157.00 as risk sentiment sours
USD/JPY is extending pullback from multi-month high of 158.07 set on Thursday. The pair drops toward 157.00 in the Asian session on Friday, courtesy of the negative shift in risk sentiment. Markets remain concerned about China's econmic health and the upcoming policies by the Fed and the BoJ.
Gold takes out all key resistance levels; where next?
Gold price consolidates a two-day upsurge above $2,650 early Friday. The US Dollar stalls its uptrend amid sluggish US Treasury bond yields and a cautious mood. Gold price cheers geopolitical woes and a bullish daily RSI as buyers scale all key technical hurdles.
Bitcoin, Ethereum and Ripple eyes for a rally
Bitcoin’s price finds support around its key level, while Ethereum’s price is approaching its key resistance level; a firm close above it would signal a bullish trend. Ripple price trades within a symmetrical triangle on Friday, a breakout from which could signal a rally ahead.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.