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22 May 2015
Gold falls into losses
FXStreet (Mumbai) - Gold fell into losses to trade around USD 1202-1203/Oz after the official data released in the US showed core inflation in pair rose by the most in two years.
Strong USD weighs over Gold
The USD index recovered losses to trade at 96.00 levels after the data showed Core CPI rose 0.3%, the biggest gain since January 2013. The actual figure was higher than the estimated 0.2% advance. The markets ignored the drop in the headline CPI figure.
Earlier today, the weakness in the USD index had pushed the metal to USD 1213.7. However, markets ditched the yellow metal as a sharp rise in the core inflation means the indicating inflation is inching toward the Federal Reserve’s goal.
Gold Technical Levels
The immediate resistance is located at 1207.22 (200-DMA), above which the metal could re-test the daily high at 1213.7. On the flip side, a break below 1199.61 (50-DMA) could drive the metal lower to 1192.5 (Apr. 9 low).
Strong USD weighs over Gold
The USD index recovered losses to trade at 96.00 levels after the data showed Core CPI rose 0.3%, the biggest gain since January 2013. The actual figure was higher than the estimated 0.2% advance. The markets ignored the drop in the headline CPI figure.
Earlier today, the weakness in the USD index had pushed the metal to USD 1213.7. However, markets ditched the yellow metal as a sharp rise in the core inflation means the indicating inflation is inching toward the Federal Reserve’s goal.
Gold Technical Levels
The immediate resistance is located at 1207.22 (200-DMA), above which the metal could re-test the daily high at 1213.7. On the flip side, a break below 1199.61 (50-DMA) could drive the metal lower to 1192.5 (Apr. 9 low).