The bulls have regained control as gold price is headed towards $1215 following the unimpressive US inflation report. Can the yellow metal sustain the bounce?
14 September, OctaFX – Gold prices on Comex are seen extending the Asian recovery in the European session, as the US dollar continues to lag against its major rivals following the unimpressive US inflation report and a recovery in the Emerging Markets (EM) currencies.
Gold Price Headed to $1215
The bulls have regained control after the overnight drop to near $ 1205 levels, mainly driven by the renewed selling interest seen around the US dollar, as the European traders hit their desks and digest the downbeat US CPI figures.
However, it remains to be seen if the yellow metal can sustain the bounce amid a fresh bid tone caught by the Treasury yields across the curve, as easing US-Sino trade tensions lift the appetite for the higher-yielding assets.
Also, markets may turn cautious heading towards the US retail sales, industrial production and prelim consumer sentiment data, dropping later in the NA session.
Gold Technical Levels
Resistances: $ 1218 (2-week tops), $ 1222.83 (daily R1/ Fib R2), $ 1230 (round figure).
Supports: $ 1203.68 (5-DMA), $ 1200 (psychological level), $ 1190.40 (Sept 11 low).
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