• Gold prices have pared losses on weaker-than-expected US economic data, after falling 1 per cent on renewed expectations of an increase in US interest rates next month that pushed the dollar higher.
• Spot gold was down 0.2 per cent at $US1,235.85 an ounce by 3:23 pm Tuesday EST (0723 Wednesday AEDT), but has gained more than 7 per cent since the start of the year. US gold futures settled down 0.02 per cent, or just US20 cents, at $US 1,238.90.
• Bullion rebounded above its lows after data showed the US Purchasing Managers Index (PMI) was at 53.9 in February, down from 55.6 in January and expectations for 55.8.
• "Gold's resilience is all the more impressive considering US equities are setting record after record, while the dollar is also fairly strong," INTL FCStone analyst Edward Meir said.
Support is down to a "myriad political and economic uncertainties" that lie ahead in 2017, Meir added.
• Also on the radar is President Donald Trump's address to Congress on February 28, which analysts and traders hope will offer details on infrastructure spending and tax cuts.
• Technically, April gold futures prices closed nearer the session high. The gold bulls have the overall near-term technical advantage. Prices are still in a two-month-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00.Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,210.00. First resistance is seen at the February high of $1,246.60 and then at $1,250.00. First support is seen at today’s low of $1,226.80 and then at $1,220.00. Wyckoff's Market Rating: 6.0
Reference: Business News, Kitco
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