“¢ The global flight to safety underpins safe-haven demand and helps regain traction.
“¢ A subdued USD price action remains supportive of the ongoing positive momentum.
“¢ Traders now eye advance US Q3 GDP growth figures for some meaningful opportunities.
Gold finally broke out of its Asian/early European session consolidation phase and jumped back closer to over three-month tops, set on Tuesday.
A fresh round of selloff across global equity markets boosted demand for traditional safe-haven assets and assisted the precious metal to quickly reverse an early dip to $1230 area.
The global flight to safety was further reinforced by a sharp fall in the US Treasury bond yields, which remained supportive of the bid tone surrounding the non-yielding yellow metal.
Adding to this, a subdued US Dollar price action, which tends to underpin demand for dollar-denominated commodities, further collaborated to the ongoing positive momentum.
It, however, remains to be seen if bulls are able to maintain their dominant position or the commodity continues with its struggle to make it through the $1240 hurdle as traders start repositioning for today’s important US macro data.
Today’s US economic docket highlights the release of advance Q3 GDP print and is anticipated to show that growth slowed to 3.3% annualized pace. Any meaningful divergence from the expected figures might infuse a fresh bout of volatility and produce some meaningful trading opportunities.
Technical levels to watch
On a sustained move beyond $1240 immediate resistance, the commodity is likely to accelerate the up-move towards $1245-46 intermediate resistance en-route $1251-52 supply zone. On the flip side, the $1230-28 region now becomes an immediate support to defend, which if broken is likely to accelerate the slide towards $1221 level ahead of the $1215 strong horizontal support.
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