Bullion continues its way up after the US dollar took a hit from disappointing data. The country’s consumer prices rose at a modest pace of 2.1% yoy, below a consensus of 2.2%, the slowest increase in 2-1/2 years. Markets saw the opportunity to short an already softened dollar, which gave the precious metal much room on the upside. Global uncertainties including the Brexit stalemate contribute to the bullish sentiment.
On the technical side, bullion is rising back towards the 20-day moving average. 1312 would be the next resistance level. On the downside, 1304 is the immediate support for the day.
The sentiment-price correlation chart shows the sentiment nearing the neutral line. Daily news sentiment is moving higher and in 80% of the last 10 occurrences price has risen within 8 days.