Gold struggles near 8-week low to have a meaningful recovery

FXStreet – Gold struggles from 2-month low of the day yesterday to recover, while trading the 6. Session in a row, takes place just below the 100-day SMA in the loss.

Currently, the trade takes place to 1221 U.S. dollars, while the consolidation in a narrow Range based on the increasing probability of a Fed rate hike in June. Higher US interest rates lead to capital outflow from the non-interest-bearing yellow metal, and this limits the recovery from the lowest level since mid-March.

The slight Pullback in the USD was triggered by the correction in the US Treasury bond yields, and the demand for the Dollar will increase traded commodities such as Gold. A slightly negative opening of European equities supported the safe haven of Gold also, so that the downward movement remains currently limited.

US Dollar to move sideways to 99,30

Today’s US economic calendar has no important data to offer, and so the focus remains on the General risk sentiment and the US bond yields dynamics.

Important Levels

Supports lie at 1215/14 (yesterday’s Low), 1210 and 1205. On the other hand, Resistances are located at the 100-day SMA of 1225, 1229,30, 1236 and 1240/42.

** FXStreet News Editorial, FXStreet**

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