Gold has been a chop today
Gold has been a chop today, consolidating the recent drop from the 1270 psychological level down to 1258 territories below the key support of the 1260 boundary.
However, the yen is the outperformer in markets and that has not been helping the bear’s cause. It is +0.43% at the time of writing, slightly lower than the highest levels for the session vs the greenback while stocks are attempting a recovery on Wall Street.
A wobble in risk was supporting gold today as full markets return to pick up the prices of yesterday’s thin trade and recent news. There are a number of fundamental factors that can be attributed to the support for gold previously pushing it to 1270, from the headaches associated with the Greek news, the N.Korean threats, June around the corner and a market factoring a hike from the Fed.
The DXY is not exactly a convincing bullish trade either at the moment, barely above water on the psychological 97 handle and is supporting a minor recovery in the price.
Keeping an eye on the yen for a break back to the 111 handle to bring in additional offers for Gold though could be on the cards should stocks continue to recover and a key technical area for gold is 1265 and the 4hr 10 sma at 1266. tot he downside, the 50 sma on the same time frame at 1258.