Gold above $1100/Oz ahead of US data

By FXStreet FXStreet (Mumbai) – Gold prices advanced ahead of the US CPI data release to hit a high of USD 1103.12 levels.

Gold up 1% on risk aversion

Prices are up 1% or USD 12 as the risk aversion in the Asian and Equity markets triggered a flight to safety. The moderate weakness in the USD index and the sharp drop in the treasury yields also helped the yellow metal rally. Gold usually moves in opposite direction to USD index and treasury yields.

The immediate focus now is on the US CPI figure. The cost of living is expected to have stalled in December, while core inflation is expected to have ticked higher.

Gold Technical Levels

Prices hover around USD 1100/Oz. The immediate resistance is seen at 1101.70 (38.2% of Oct high-Dec low), above which prices could test 1108.55 (Jan 11 high). On the other hand, a failure to sustain above 1100 could send the prices lower to 1087.84 (daily low).
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Source:: FX Street