After easing toward the $1270 handle in the early NA session, the XAU/USD pair gained traction and recovered this week's losses as the precious metal finally capitalized on the flight-to-safety. Some concerning earnings reports from large U.S. corporations that highlighted weaker-than-expected sales in the Asia Pacific region weighed on the market sentiment today and helped Gold retrace yesterday's drop to 2019 lows. On the other hand, the greenback also benefited from the risk-off atmosphere and posted strong gains against its major rivals, possibly limiting the XAU/USD pair's gains as well.
Gold prices corrected from the yearly lows and surged above the $1277 level after retreating from the oversold zone. Despite getting rejected by the $1279 level, the price is currently hovering above the $1274.06 level with an increasing bullish momentum. With the continuation of the recovery in our focus, we will be watching the $1280.11 resistance level.
Support: 1277.18/ 1270.1
Resistance: 1280.11/ 1282.19