Gold: Firmer, making headways towards $ 1230

Gold extends its downside consolidation phase into third day today, although takes on the recovery from 1224 levels amid a retreat in the US treasury yields and US dollar.

Gold regains 5-DMA at 1226.70

Currently, Comex gold futures trade 0.26% higher at 1227.05, receding from session highs posted at 1227.80 some minutes ago. The yellow metal continues to trade in the familiar ranges below $ 1230 barrier, as the upside seems limited amid markets pricing-in a 100% chance of a Dec Fed rate hike.

Analysts at ANZ explained that the market is now pricing nearly 100% odds of a Fed hike in December, after St Louis Fed President Bullard noted that he continues to predict only one more 25bp rise, probably in December.

On Wednesday, gold rallied to test $ 1230 after the US industrial production and PPI data missed expectations and weighed on the greenback for the time being. All eyes now remain on Fed Chair Yellen’s testimony and US CPI data for fresh insights on the US interest rates outlook.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1232.95 (previous high) and 1238.80 (daily R2). Meanwhile, the support stands at 1224 (daily low) below which doors could open for 1220 (zero figure).

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