A weaker US Dollar and an improvement in risk appetite boosted Gold prices especially during the NA session as the greenback consolidates losses against commodity and emerging market currencies. The ounce printed a fresh 2-week high at $1208.30 and then pulled back modestly after some potential new negotiations between China and US emerged with also a negative reading in the PPI. Today's US CPI is expected to print higher which can help the Dollar offset some of its losses but we will have to wait and see the progress of the trade war to assess if it will regain its allure as a safe haven.
The yellow metal broke decisively above $1200 and points to further gains from a technical perspective. The price is currently pulling back from overbought conditions as we may see some further correction towards the next $1201.5 support level.
Support: 1198.6 1197.75
Resistance: 1207.8 1214.15