Gold Inches Higher Ahead Of Inflation Data

Gold prices ended a choppy, two-sided trading session slightly lower on Tuesday as a recovery in global stock markets dented the appeal of safe haven assets. A higher U.S. dollar index was also a negative for gold. The pound’s slide and political concerns in Europe gave the dollar a lift. In economic news, the Labor Department said Tuesday that the producer price index edged up 0.1% last month after rising 0.6% in October. XAU/USD inched higher in early Asian trading on Wednesday as investors awaited the U.S. inflation data.

The key technical levels remain the same as the market continues to consolidate in a relatively tight range. The bulls have to push prices above the 1252/48 zone to march towards the next barrier located in 1261/0. Closing above 1261 on a daily basis paves the way for a test of 1266-1265.50.



To the downside, the initial support is located in 1241/0. If XAU/USD dives below 1240, expect a move back towards 1236 or even 1233. Below there, the 1230/29 area stands out as a strategic support. The bears have to produce a daily close below 1229 to challenge 1226/4.



Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.