The yellow metal pulls away from 6-week lows yesterday as comments from Fed policymakers questioned future rate-hikes. Even better than forecasted US data couldn’t hold Gold prices down for long as comments from the Minneapolis Federal Reserve President Neel Kashkari and Boston Fed President Eric Rosengren raised questions on the Fed’s future rate-hike trajectory. Rosengren said risks from macro events like Brexit, trade talks are looming large whereas Kashkari said that the US economy is not at full employment. However, the US Dollar regained market attention after sluggish prints of the Australian GDP. Adding to the USD strength was EU-UK leaders’ inability to reach a Brexit deal and positive developments at the US-China trade negotiation front. While the broad-based USD strength continues to weigh on Gold, bulls are trying to hit back as market sentiment doesn't hint at a risk-off mood.
Gold prices took a breath during Tuesday's session after retreating from the fresh lows of $1281.11 per ounce. The price is currently pushing above the $1290 level as the yellow metal retreats from the oversold zone. An extended recovery looks more likely to happen, that is why we will be focusing on the $1297 resistance level.
Support: 1282.19 / 1277.18
Resistance: 1291.83 / 1293.78