Gold refreshes weekly tops on dovish ECB, retreats post-upbeat US macro data
- Dovish ECB statement provides a minor lift to the non-yielding yellow metal.
- Upbeat US macro data fuels the ongoing USD bullish run and capped up-move.
- Traders might refrain from placing fresh bets ahead of the FOMC next week.
Gold quickly reversed a bullish spike to fresh weekly tops and is currently placed in the neutral territory, around the $1425-26 region post-US data.
The precious metal built on its steady intraday up-move and jumped to levels beyond the $1430 region in reaction to dovish ECB policy statement, indicating to maintain highly accommodative policy for a prolonged time.
However, a combination of factors - including the ongoing US Dollar bullish run and a positive mood around equity markets kept a lid on any strong follow-through, rather prompted some fresh selling at higher levels.
With investors looking past the news that North Korea fired two short-range missiles into the sea early on Thursday, a modest pickup in demand for perceived riskier assets dented the precious metal's relative safe-haven status.
Meanwhile, the already stronger greenback got an additional boost following the release of stronger-than-expected durable goods orders data for June and exerted some downward pressure on the dollar-denominated commodity.
The downfall, however, remained limited as investors seemed reluctant to place aggressive bets ahead of the highly anticipated FOMC meeting next week, which will influence demand for the non-yielding yellow metal.
Technical levels to watch