Gold moved-off to six-month highs reached at $1266.35 during US' last session and now consolidates above the $1260 level. The rally seen in prices was mainly driven by an increased flight to safety, as the investors try to avoid risk after Fed’s hawkish twist aggravated US economic slowdown concerns and knocked-off the greenback amid a potential yield-curve inversion. The fear over US recession triggered a sell-off in the global equity market which further boosted the demand for traditional safe-havens. Looking ahead, the broader market sentiment will continue to play a key role the yellow metal's price action while the market awaits for the release of US data while the volume started to dry out.
Gold prices surged again and this time printing new highs at $1266.35 per ounce. The price is currently consolidating above the $1260 level with a bullish momentum but not so far to enter the overbought state. However, there is more room for the prices to surge before the volume completely dries out so we will be focusing on the $1270.1 resistance level.
Support: 1237.79 / 1234
Resistance: 1241.76 / 1247.5