Gold futures on Comex came under fresh selling pressure over the last hour, dropping sharply to hit fresh three-day low below $ 1260 barrier.
The yellow metal continues to ignore the persistent risk-off trades amid falling Asian equities, while focus now remains on the Chinese CPI figures due tomorrow, especially after awful China trade data, which reinforced China slowdown fears into markets.
Moreover, the losses in gold can be also attributed to the fresh round of profit-taking after the precious metal failed to take-out the psychological $ 1280 levels. While downward projection for the metal noted by Goldman Sachs, also dampened the sentiment around gold.
Goldman Sachs noted, “The rally in gold could fizzle out as stronger U.S. data reignites a stalled dollar rally. Prices will head downward to $1,100 an ounce in the near term.”
Gold Technical Levels: The metal has an immediate resistance at 1265-66 (5-DMA/ daily high) and 1270 (round number). Meanwhile, the support stands at 1251/47 (10-DMA/ 1h 200-SMA) below which doors could open for 1245.
Gold prices ended the U.S. day session near unchanged and gave back moderate early gains Tuesday. More mild profit-taking pressure was seen, as well as some backing and filling on the near-term charts. The yellow metal bulls are still enjoying the firm overall near-term technical advantage, which means the path of least resistance for prices remains sideways to higher. April Comex gold was last up $0.10 at $1,264.10 an ounce. May Comex silver was last down $0.193 at $15.435 an ounce.
Technically, April gold futures prices closed near the session low. Prices are still in a 2.5-month-old uptrend on the daily bar chart and bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,238.00. First resistance is seen at $1,274.10 and then at last week’s high of $1,280.70. First support is seen at Monday’s low of $1,257.40 and then at $1,250.00. Wyckoff’s Market Rating: 7.5
Reference: FXStreet, Kitco
Thai
Eng