Gold prices changed course after Wall Street's reverse three-digit slump. USD sell-off backing base metals' recovery
Spot gold trades above $1,347.00 a troy ounce, reversing an early slump to 1,317.37, achieved after the release of US inflation. The numbers fueled panic selling amid concerns over US rates rising at a faster than convenient pace. Gold followed suit, as higher rates in the US usually make the safe-haven metal less attractive. Gold remains near its daily highs, with financial assets stabilizing after the wild rides seen early US session.
Levels to watch
Gold came back after bottoming near the 50% retracement of its December/January rally, now trading above the 23.6% retracement of the same advance at 1,335.35, providing a major support for the upcoming sessions, ahead of the 1,327.00 region.
February high at 1,350.95 is the immediate resistance now ahead of 1,356.99, the high posted on Jan. 26. Above the level, the metal has scope to extend its advance up to 1,366.00 the multi-month high set last January.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.