Gold retreats from multi-week lows, re-attempts $ 1230

By FXStreet After having fallen over -1.30% to seven-week lows in the previous session, the bullion is seen making minor-recovery attempts in the Asian session so far.

Gold heads towards $ 1230 mark

Currently, gold trades +0.23% higher at 1228.25, having posted day’s high at 1230.32 and day’s low at 1225.17. The bullion stages a tepid bounce from multi-week troughs as the USD bulls take a breather from the recent upsurge and consolidate solid gains seen yesterday after the US dollar index jumped to fresh eight-week highs on hawkish Fed speaks.

The US dollar jumped to the highest levels in almost two-months after the Fed officials indicated higher chances of a June Fed hike, while surprisingly positive US new home sales data also added to the June Fed hike bets and bolstered the greenback at the expense of non-interest bearing gold. Meanwhile, a stronger US dollar makes the dollar-denominated gold more expensive for the holders in other currencies.

Looking ahead, a number of Fed speaks are lined up later this week, including Fed Chair Yellen’s speech scheduled on Friday, which will provide further insights on the Fed’s rate hike prospects in the upcoming months. While on the data front, the US durable goods and …read more

Source:: FX Street