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Gold jumped +0.81% to 1225.14, retracing slightly from $ 1226.90, session tops. The yellow metal jumped back on the bids as investors seek safe-haven amid global stock markets turmoil, re-ignited by oil price declines. The Nikkei slumps over 2%, while Australia’s ASX 200 is down -1.55%.
Further, the bullion derives strength from broad based US dollar weakness after the US factory orders as well as LMCI figures disappointed markets and cool-off Fed rate hike bets this June somewhat.
Meanwhile, the metal will continue to track the broader market sentiment ahead of the US services PMI and JOLTS jobs openings data due later today. While all eyes remain on the FOMC minutes due tomorrow for fresh cues on the US interest rates outlook.
The metal has an immediate resistance at 1230 (round number) and 1237.38 (20-DMA). Meanwhile, the support stands at 1216.93 (50-DMA) below which doors could open for 1208/07 (previous lows).
"We are getting mixed data out of the U.S. and somewhat contradictory comments from the Fed. That is creating some uncertainty for gold," said a Singapore-based trader, adding that the metal was seeing some technical support near its 50-day moving average near $1,215 an ounce.
Reference : Reuters, FXStreet
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