Gold: Recovery stalls as DXY regains poise
Having booked its biggest weekly loss in 2017 on Friday, gold prices on Comex staged a solid rebound, only to run through fresh offers at Tokyo open, despite moderate risk-aversion.
Gold back below 5-DMA at $ 1235.50
Currently, gold trades modestly flat around $ 1234, retreating from session tops previously posted at $ 1237.15. Gold’s recovery from 2-week troughs faltered earlier on the day, after the greenback regained bids and made minor-recovery attempts from Friday’s sell-off.
However, it remains to be seen for how long can the yellow metal remain supported above $ 1200 barrier, as the probability of a Fed move in March has already risen to nearly 80%, as indicated by money markets.
Meanwhile, attention turns towards the highly-anticipated US payrolls data due for release this Friday, which will determine Fed’s stance on a March rate hike, as cited by the Fed Chair Yellen on Friday.
The FOMC begins its two-day meeting on March 14th, with the policy decision to be announced on March 15th.
Comex Gold Technical Levels
The metal has an immediate resistance at 1240 (round number) and 1245.13 (10-DMA). Meanwhile, the support stands at 1230 (key support) below which doors could open for 1222.90 (2-week low).