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19 May 2015
Gold drops near $ 1222 on profit-taking
FXStreet (Mumbai) - Gold prices on Comex remain deep in red in the European morning, having reached fresh three month highs in the previous session, largely on the back of a profit-taking spree after the recent strength.
Gold consolidates previous gains
Currently, gold trades -0.42% lower at 1222.40, having posted day’s high at 1225.40 and day’s low at 1220.30. Gold eased-off fresh three months highs reached yesterday at 1232 and keep losses this session as traders took to profit-booking on their gold longs after easing rate hike expectations following the recent series of poor US macro data boosted the gold bulls.
Looking ahead, markets now await a set of US housing data due later today while the yellow metal may test the three-month resistance influenced by the FOMC meeting minutes on Wednesday.
Meanwhile, the US inflation figures are scheduled on Friday and are expected to show moderate deflation annually in April, providing another significant element for the Federal Reserve's data dependent mode to pinpoint the optimal timing for a rate hike.
Gold Technical Levels
The metal has an immediate resistance at 1225 and 1232 levels. Meanwhile, support stands at 1220 below which doors could open for 1215 levels.
Gold consolidates previous gains
Currently, gold trades -0.42% lower at 1222.40, having posted day’s high at 1225.40 and day’s low at 1220.30. Gold eased-off fresh three months highs reached yesterday at 1232 and keep losses this session as traders took to profit-booking on their gold longs after easing rate hike expectations following the recent series of poor US macro data boosted the gold bulls.
Looking ahead, markets now await a set of US housing data due later today while the yellow metal may test the three-month resistance influenced by the FOMC meeting minutes on Wednesday.
Meanwhile, the US inflation figures are scheduled on Friday and are expected to show moderate deflation annually in April, providing another significant element for the Federal Reserve's data dependent mode to pinpoint the optimal timing for a rate hike.
Gold Technical Levels
The metal has an immediate resistance at 1225 and 1232 levels. Meanwhile, support stands at 1220 below which doors could open for 1215 levels.