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14 May 2015
Gold drops to $ 1213 on profit-taking
FXStreet (Mumbai) - Gold prices on Comex edged lower in Asia, having reached fresh five week highs in the previous session, largely on the back of a profit-taking spree after the recent strength.
Gold eases off fresh multi-week highs
Currently, gold trades -0.40% lower at fresh session lows of 1213.30, having posted day’s high at 1215.80. Gold moved slightly away from five week highs and traded in red this session as traders took to profit-booking on their gold longs after gold bulls stormed their way through 1200 marker, gaining nearly $20 yesterday.
In the US last session, gold prices shot higher after investors got a glimpse of yet another lacklustre US economic report. Retail sales were flat in April, fresh data from the Department of Commerce showed earlier on Wednesday. That is a disappointing result even when compared to the relatively modest expectations of market participants.
Weak US economic data raised concerns over US economic recovery, thereby pushing back rate-hike expectation till end of 2015 which boosted the gold prices. Meanwhile, markets will focus on a set of US macro data for further cues on the yellow metal.
Gold Technical Levels
The metal has an immediate resistance at 1218 and 1223 levels. Meanwhile, support stands at 1210 below which doors could open for 1207 levels.
Gold eases off fresh multi-week highs
Currently, gold trades -0.40% lower at fresh session lows of 1213.30, having posted day’s high at 1215.80. Gold moved slightly away from five week highs and traded in red this session as traders took to profit-booking on their gold longs after gold bulls stormed their way through 1200 marker, gaining nearly $20 yesterday.
In the US last session, gold prices shot higher after investors got a glimpse of yet another lacklustre US economic report. Retail sales were flat in April, fresh data from the Department of Commerce showed earlier on Wednesday. That is a disappointing result even when compared to the relatively modest expectations of market participants.
Weak US economic data raised concerns over US economic recovery, thereby pushing back rate-hike expectation till end of 2015 which boosted the gold prices. Meanwhile, markets will focus on a set of US macro data for further cues on the yellow metal.
Gold Technical Levels
The metal has an immediate resistance at 1218 and 1223 levels. Meanwhile, support stands at 1210 below which doors could open for 1207 levels.