Gold price gains nearly 1% above $1192
London (May 12) Gold prices on Comex trades regained momentum and rallied during the European session, despite rising yields on both sides of the Atlantic, as the US dollar was relentlessly sold-off across the board which lifted the gold prices.
Gold trades above 50-DMA
Currently, gold trades nearly 1% higher at 1193, having posted day’s high at 1196 and day’s low at 1179.90. Gold remains elevated as a falling US dollar helped to lift the appetite for the metal, while traders now await more US economic data that could influence the US currency.
Meanwhile, gold prices may remain influenced by USD moves amid a data-light US economic calendar. While speech by Fed’s Williams will be closely watched amid expectations that the Federal Reserve will start to raise its interest rates sometime this year, with markets betting on September. A rate lift-off could weigh on gold, which is a non-interest bearing asset.
Later in the week, Wednesday will be the busiest day in terms of potential market-moving macro data. Chinese industrial production numbers, European GDP and inflation figures, fresh forecasts from the Bank of England, as well as US retail sales are all due on Wednesday.
Gold Technical Levels
The metal has an immediate resistance at 1200 and 1207 levels. Meanwhile, support stands at 1190 below which doors could open for 1185 levels.