Gold prices unable to retain early gains, undermine by upbeat US data. Spot gold stuck at the lower end of Friday's range.
Spot gold managed to add a couple of bucks on the first day of the week, ending it around $1,334.00 a troy ounce. The metal peaked for the day 1,338.49, but dollar's recovery during US trading hours pulled it down.
The bright metal traded sideways in the lower end of Friday's range, as Jerome Powell becomes the new Fed chairman. Powell has sworn in this Monday in a private ceremony, pledging for transparency during his mandate. Powell takes over at a rosy time for the US economy, but the challenges ahead are still high, as inflation remains stubbornly low.
The metal is some $30 below its multi-month high set last January at 1,366.00 but the retracement has been more due to profit taking than to hopes of a dollar's recovery, as three rate hikes in the US this year have been largely priced in.
Technical levels
Friday's low at 1,327.37 is the immediate support ahead of 1,324.14, the low set on January 18th. Monday´s high is the immediate resistance, followed by the 1,345.00 region, around witch the metal presents multiple daily highs and lows.
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