FXStreet (Mumbai) – Gold prices dropped to a session low of USD 1175.5/Oz levels before recovering partly to trade around USD 1182-1184/Oz levels as the USD refused to strengthen despite upbeat retail sales and jobless claims data.
Gold trades above hourly 200-MA
The metal rose back above its hourly 200-MA currently located at USD 1182.03/Oz. The retail sales increased 1.2% as expected in May, its third consecutive monthly growth, while initial jobless claims rose 2K, although the figure stayed below 300K for the 14th consecutive week. Still, the USD index could not extend gains. A short spike to a high of 95.62 failed to last long as the index fell back to 95.20-95.10 levels.
Consequently, Gold recovered sharply from the low of USD 1175.5/Oz to trade above its hourly 200-MA. Ahead in the day, the metal could take cues from the sentiment on Wall Street and movement in the USD index.
Gold Technical Levels
The immediate support is seen at 1177.44 (5-DMA), under which losses could be extended to 1169.6 (May. 1 low). On the other hand, a break above 1188.00 could push the metal higher to 1194.50 (50-DMA).
(Market News Provided by FXstreet)