US Gold futures weaken ahead of Key data releases on Thursday
US gold futures has hit a temporary road block at $1348 levels but looks capable of sustaining recent recovery and moving higher to $1400 in the medium term
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US Gold futures have temporarily hit a road block at $1348 per ounce amidst profit booking that pushed the prices to $1320 levels on early electronic trading on Thursday.
However, the market is looking towards several key data releases today and some volatility in prices is expected today, analysts said. "On daily charts, recovery seems to have hit resistance at $1340 levels but there is no reason why prices could move to $1400 in the near term," according to Sreekumar Raghavan, Chief Strategist at Commodity Online Group. The ascending triangle formation on charts have temporarily turned bearish but has the potential to swing higher to $1420 levels before consolidating in the short-to-medium term, he added. An RSI of 54 is neutral to positive and MACD is in positive territory signalling possiblity of an uptrend even as market looks for key data releases today.