FXStreet (Mumbai) – Gold prices advanced to USD 1193.40/Oz as the drop in the Q1 US core personal consumption expenditure (pce) weighed over the US dollar.
Gold rises as USD index falls below 97.00
The USD index fell below 97.00 levels on month end unwinding of positions and due to weak US data. Initially, the markets ignored the GDP report. However, investors are now pricing-in a slowdown in the core pce, an inflation gauge widely tracked by the Fed officials. Core pce in the Q1 was revised lower to 0.8% quarter-on-quarter from 0.9%.
Meanwhile, slight risk aversion on the Wall street also supported the safe haven metal. Dow Jones Industrial Average (DJIA) fell 0.36%, while the 10-year treasury yield fell three basis points.
Gold Technical Levels
The immediate resistance is seen at 1192, above which gains could be extended to 1195 levels. On the flip side, a break below 1185 could drive the metal lower to 1179.9.
(Market News Provided by FXstreet)