Gold consolidates daily gains above $1250
After rising to a fresh weekly high at $1259 against the USD, the precious metal went into a consolidation phase in the late NA session and is now trading at $1256, up 0.44%, or $5.5, on the day.
Despite dovish comments from today's Fed speakers, the bearish pressure on the US Dollar Index seems to have eased in the last hours. Following a drop below the 97 handle, the index is now moving sideways at 96.93, down 0.35% on the day. Although the index had been able to hold above the 97 mark for the whole week, a profit taking on the last trading day seems to have pushed the index back towards its weekly opening level.
- Fed’s Mester: One more rate hike expected in 2017
- Fed's Bullard: Fed can wait on further rate increases given "downside surprise" in recent data
On the other hand, major equity indexes in the U.S. are preserving their modest gains, making the safer assets like Gold less desirable. With today's upsurge, the XAU/USD pair is marching towards a positive close on a weekly basis after recording heavy losses for two straight weeks. Nevertheless, this week's price movement hadn't been sustainable enough to reveal the pair's next short-term direction.
- Gold gripped by conflicting forces - BBG
Technical outlook
Both on the daily and the weekly graphs, the CCI and the RSI indicators are flat near their respective neutral levels at 0 and 50, confirming the neutral outlook. Supports for the pair could be seen at $1254 (50-DMA), $1241 (Jun. 20 low) and $1229 (200-DMA). On the upside, resistances are located at $1259 (daily high), $1265 (20-DMA) and $1280 (Jun. 14 high).
- Gold: Rallies cannot be ruled out - Natixis