Gold price recovers from fresh 2-week lows

Frankfurt (May 27)  Gold prices on Comex recovered partial losses, although remains in red during the European session, largely as the US dollar managed to fight back lost ground and trades steady ahead of a data-dry US session.

Gold recovers from 1184.60

Currently, gold trades -0.13% at 1186.20, having posted day’s high at 1191 and fresh 2 week lows at 1184.60. Gold remains under pressure as the US dollar is set to resume is upward trajectory after a brief correction seen earlier today.

Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades -0.08% lower at 97.30, retreating from fresh session lows reached at 97.01. A stronger greenback makes dollar-denominated commodities more expensive for holders of other currencies.

The upside in the yellow metal remains capped he ongoing talks about the timing of the Federal Reserve (Fed) rate hike following a raft of stronger than expected US economic releases which kick-started with upbeat US CPI figures released on Friday.

Gold Technical Levels  

The metal has an immediate resistance at 1192 and 1195 levels. Meanwhile, support stands at 1182 below which doors could open for 1178 levels.

Source: FXstreet