Gold has turned positive on the day, up by 0.04% to $1,318.50 after falling to a low of $1,315.66 earlier
The dollar is slipping on the day, though the move is relatively tiny. We're yet to get into the thick of things in Europe, but this is an update on the levels to watch out for in gold.
Yesterday's comments by Powell sent gold tumbling, but the close sees it hang onto support on the daily chart at the 38.2 retracement level @ $1,316.64. Price remains supported at the level today as well, after breaking below the trendline support yesterday.
If the dollar manages to extend gains from yesterday, the next level to watch out for is the $1,300 level where there is the 50.0 retracement and the 100-day MA (red line) lurking. But if the dollar's reprieve appear to be short-lived, then the upside cap is $1,335.56 at the 23.6 retracement level - where it failed to close above in trading this week.
The conundrum for gold is that talks of inflation is positive for the commodity, but a stronger USD on the back of the Fed hiking rate counters that. It's a cancelling effect, but if there are growing signs of inflationary pressures in other parts of the globe then gold will be a beneficiary of that this year.
