Despite positive U.S. economic data, Gold ends firmer overnight, holding above 1,210 as major currency turning sharply lower against the USD. The yellow metal continued on its’ positive momentum as follow-through technical buying and renewed physical demand pushed the metal to the intra day high at 1,220. Selling catalyst for the metal came when durable goods orders and core U.S. inflation released higher than expected. Gold did managed to defended the petering support at 1,207.
Pushing the metal above the Fibonacci Retracement at 161.80% on H4 chart, Gold has rebounded to a new high at 1,220, for the week. Renew interest in USD and the combined release of upbeat U.S. economic data release (higher-than-expected durable goods orders and core U.S. inflation) eventually slid gold down from its high to 1,207 level. Stoic. Oscillator indication highlighted the slowing pace of buying with signs that the market prompt a return to lower level. Should gold continues to defend itself at the technical neckline of 1,200 in the not-too-distant future, bias remains to the upside.
On the note of bearish outside market forces, gold has managed to hold part of its gains, defending itself at the support at 1,210. On observation of the H1 charts, price action signifies the commencement of a new trend with the 20, 55 & 200 trending towards a convergence. Such formation could serve as an indication that price is indeed base-building at the support level of 1,200 for the near term.