Gold Finds Support at the 200 Hour MA and Rebounds
Gold manages to close higher today after a volatile session at $1,328. The precious metal, spend the first half of the day in negative territory hitting the low at 1319.81 a fresh one-week lows. Investors were dumping safe heaven asset as the sentiment improves across global markets. The U.S. Bureau of Labor Statistics reported earlier that the Producer Price Index (PPI) on a yearly basis dropped to 1.8% in May from 2.2% in April and fell short of the analyst’s expectation of 2%. The core PPI, came in at 2.3% as expected. On a monthly basis, the PPI and the core PPI matched analyst’s estimates with 0.1% and 0.2%, respectively. During the US session, gold attracted bids and managed to finish the day on positive ground.
The precious metal momentum is bullish as it holds above all the major daily moving averages despite the recent correction. The immediate support for the yellow metal stands at today’s low at $1,319 (200h MA) while more solid support can be found at the $1,300 where the 100 day moving average crosses. On the upside first resistance would be met at at $1,335 the high from yesterday, while a break above can lead prices up to 1344 recent high. We are bullish on gold and today’s move might be the end of the recent correction wave.