Gold tests $ 1280 and retreats, US CPI in focus

By FXStreet Gold regained momentum and edged higher this Tuesday on the back of mixed sentiment prevalent on the Asian equities and a muted US dollar across the board.

Gold bounces-off low near 10-DMA at $ 1274.65

Currently, gold trades +0.10% higher at 1278.75, easing-off fresh session highs printed at 1280.01 in the last hour. The bullion regained lost ground and now resumes its recent bullish streak into a third day today, finding support from mixed trading seen in the Asian indices amid higher oil and copper prices.

Moreover, a broadly subdued US dollar also helps under the yellow metal as we head towards a host of US macro updates due later in the NA session. Meanwhile, the US dollar index trades -0.08% lower at 94.46 levels, in session lows.

However, further upside looks limited as markets expected the US economic releases, including the inflation report to better expectations and hence, could reinforce June/July Fed rate hike bets and weigh down on the non-interest paying gold.

Gold Technical Levels

The metal has an immediate resistance at 1287/1290 (May 9 High/ round number) and 1300 (psychological levels). Meanwhile, the support stands at 1274.65 (10-DMA) below which doors could open for 1267 (20-DMA).
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Source:: FX Street