Gold Price Stands Immune Above 1250, Eyes On U.S. Data

New York (Oct 16)  Gold prices held steady on Friday after it touched 1262.34 high, as investors remained cautious ahead of U.S. retail sales and consumer sentiment data in addition to Federal Reserve Chair Janet Yellen's speech due later in the day. Strong U.S. dollar weighed on the precious metal, especially after increased probability of a Fed rate hike in December, knowing that the safe haven metal is highly sensitive to interest rate decisions.

Gold collapsed on Friday's early trading sessions, clocking a low 1254.64 as the greenback remains solid, currently trading at 1255.84 intraday. Today, all eyes are focused on U.S. financial data, later on Yellen's speech, where we'll either witness gold going back to Sep and Aug highs, or price will tumble way below depending on the outcome.

Trend: Neutral bearish

Key levels to watch: Daily Pp 1256.40

First resistance: R1 1264.06, R2 1279.54, R3 1290.18, R4 1304.10, R5 1326.60

First resistance: S1 1249.50, S2 1240.75, S3 1226.69, S4 1216.10, S5 1205.20

Remark: Due to the importance of U.S. news today, price might witness high volatility, hence the gap between support and resistance. Look forward for U.S. data release scheduled at 1:30 PM GMT, later on Yellen at 6:30 PM GMT on behalf of the Federal Reserve Bank.

Source: Investing.com