Recovery off lows failed to translate into daily gains and now gold trades moderately weak on the day around $1230/Oz ahead of the US advance retail sales release.

Rejected at $1236

Metal turned lower again from $1236 as markets are considering a possibility of a rate hike this year. However, the oil-led losses in the European equities kept the metal well above its daily low of $1225.61 levels.

The immediate focus now is on the US advance retail sales figure. Post data release, investors would shift attention to US stocks, but caution would prevail ahead of Fed rate decision.

Gold Technical Levels

The immediate support is seen at 1227 (23.6% of Dec low-Mar high), under which prices could test bid around 1200 levels. On the other hand, a break above 1240 (Feb 18 high) would expose 1261.15 (previous day’s high).

Recovery off lows failed to translate into daily gains and now gold trades moderately weak on the day around $1230/Oz ahead of the US advance retail sales release.

(Market News Provided by FXstreet)

By FXOpen