Gold price firms near $1212 ahead of US data

Frankfurt (May 22)  Gold prices on Comex snapped previous losses and advanced today largely on the back of a broadly weaker US dollar while markets now focus on US CPI figures and Fed's Janet Yellen speech as she may indicate more about a rate hike and the health of the US economy.

Gold retreats from $1214.40 highs

Currently, gold trades 0.62% higher at 1211.40, having posted day’s high at 1214.40 and day’s low at 1205.10. Gold edged higher on a falling US dollar backed by weaker US macro data released yesterday which pushed back rate hike bets towards end of this year or early 2016. The dollar index, which measures the currency's strength against its major peers, trades at 95.15, recording a -0.33% loss on the day.

Meanwhile, traders now eye the upcoming inflation data may impact the price direction as well. For April, markets estimate a slowdown for the headline CPI. Later in the session, Fed Yellen’s speech may hint more about the bank's rate hike.

Gold Technical Levels

The metal has an immediate resistance at 1215 and 1220 levels. Meanwhile, support stands at 1203 below which doors could open for 1200 levels.

Source: FXstreet