Prices of the troy ounce of the safe haven metal are trading in the lower end of the range in sub-$1,220 levels amidst a renewed buying mood around the greenback.
Gold offered on Yellen, Fedspeak, data eyed
Bullion is trading on a cautious tone today after Chair Yellen’s prepared statement left no room for surprises, while her testimony before the Senate later in the session should fall in line with yesterday’s tone.
However, the yellow metal should remain under pressure in light of another speech by FOMC’s L.Brainard (permanent voter, dovish) and Chicago Fed C.Evans (centrist, voter).
It is worth mentioning that Brainard comments earlier in the week sent the greenback – tracked by the US Dollar Index – to the vicinity of 2017 lows after advocating for a more cautious tightening of the Federal Reserve in order to push inflation to the Fed’s target.
In addition, key data tomorrow in the US docket will see June’s inflation figures gauged by the CPI and retail sales, all keeping the buck under scrutiny.
Gold key levels
As of writing Gold is retreating 0.22% at $1,216.54 and a breakdown of $1,204.00 (low Jul.10) would expose $1,196.20 (low Mar.10) and finally $1,185.60 (low Jan.26). On the upside, the next hurdle is located at $1,225.20 (high Jul.12) followed by $1,230.06 (200-day sma) and then $1,235.65 (21-day sma).