Gold looks to regain $ 1200 on Trump-led USD sell-off

Gold halted is recent losing streak and staged a solid comeback on Monday, as the bulls benefit from widespread risk-aversion induced by Trump’s protectionist policies.

Gold: Fed in focus

Currently, gold rises +0.46% to 1196.55, having witnessed a bullish opening gap from 1189.50 troughs. Gold is strongly bids amid increased flight to safety as Trump’s travel plan sparked global political concerns and spooked investors across the financial markets.

As a result treasury yields plunged across the time horizon and dragged the US dollar lower alongside, offering additional support to the USD-sensitive gold. However, it remains to be seen how far the bullion can extend its recovery gains, as we head towards the FOMC meeting scheduled on Wednesday.

In the day ahead, market’s reaction to Trump’s latest policies will drive the sentiment around gold, while the US dataflow will be also closely eyed for further cues, especially after Friday’s disappointing US Q4 GDP data.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1200 (round number) and 1208 (100-DMA). Meanwhile, the support stands at 1193.56 (5-DMA) below which doors could open for 1189.50 (daily low).