FXStreet (Mumbai) – Gold prices recovered to USD 1189.4/Oz levels after the data in the US showed the personal spending stalled in April thereby pushing the savings rate higher.
Gold: Trades at 5-DMA
The metal now trades at its 5-DMA located at USD 1189.20 levels. The US dollar witnessed a moderate sell-off against major currencies after the data showed personal spending stalled, while the personal income rose 0.4% in April, thereby pushing the saving rate higher to 5.6% from 5.2%.
Moreover, the report indicates the economy may take more time to recover as the biggest component of the economy – consumer spending is still anemic. Consequently, the USD weakened, thereby helping the metal recover losses.
Gold Technical Levels
The immediate support is seen at 1185.00, under which losses could extend to 1178.00 levels. On the flip side, a break above 1192.00 could see the metal re-test 1200.00 levels.
(Market News Provided by FXstreet)