Gold: downside risks persist
Gold remains within a , though the recovery attempts have become more pronounced lately amid some corrective signals from the greenback. On the other hand, the rebound prospects still look timid and limited as the precious metal remains below the key moving averages and has derailed the important $1,300 psychological level.
The dollar continues to trade higher against majors, with the currency looks set for additional gains this week, should the incoming US data confirm the strength of the country’s economy. The key releases include CPI , GDP, and NFP employment figures. Ahead of these releases, gold will hardly dare to stage a meaningful recovery amid the lingering downside risks.
In the short- and medium-term, the yellow metal will likely remain under pressure, and the technicals confirm the picture for now. However, should the price manage to keep above the $1,290 area, the overall pressure on gold will ease partially. The immediate resistance comes at $1,300. A daily close above the 200-DMA at $1,306 is needed to open the way for a local rebound.