Gold inched higher on Monday, increasing the price of yellow metal to more than $1265.00 an ounce following some key economic releases. The technical bias remains bullish because of a higher high in the recent upside move.
As of this writing, the precious metal is being traded near $1269 an ounce. A hurdle can be noted near $1295, the high of the last major upside rally ahead of $1300, the psychological level as demonstrated with red color in the given below chart. A break and daily closing above the red mark shall trigger renewed buying interest, validating a rally towards the $1340 resistance zone.
On the downside, a support may be noted around $1265, an immediate trendline support ahead of $1249, the lower trendline support and then $1250, a key horizontal support as well as psychological number. The technical bias shall remain bullish as long as the $1249 support area is intact.
China’s CPI Data
China’s consumer price index (CPI), a main gauge of inflation, rose 1.5 percent year on year in May, the National Bureau of Statistics (NBS) said Friday. The CPI expansion in May is in line with estimates. It quickened from April’s 1.2 percent, March’s 0.9 percent, and February’s 0.8 percent.
On a monthly basis, however, the CPI declined 0.1 percent, according to the NBS. Of the 1.5-percent CPI growth in May, 1 percentage point was contributed by the carryover effect of price increases last year, NBS senior statistician Sheng Guoqing said.
Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.