Gold trades at 8-week high as Trump out-trumps USD bulls

The safe haven yellow metal is one of the major beneficiaries of the ongoing unwinding of the Trump trade.

Gold clocked an 8-week high of $1218.75/Oz on Tuesday and was last seen trading around $1215 levels.

The Greenback was offered across the board after Trump expressed concerns regarding strength in the US dollar. The treasury yields dropped as well, leading to a weakness in the US banking stocks and equity market losses.

Eyes US CPI

The consumer price index (CPI) is expected to improve to 2.1% annually from the last reading of 1.7%. The core figure is expected to tick up to 2.2% from the prior 2.1%. An uptick in core inflation could increase demand for the yellow metal.

Gold traders would also watch out for Yellen’s comments on the monetary policy outlook.

Gold Technical Levels

A break above $1217.35 (Nov 21 high) could yield a rally to $$1229.30 (Nov 16 high), above which a major resistance is seen directly at $1250 (October 2016 low). On the other hand, a breakdown of support at $1207 (Nov 20 low) would expose $1200 (zero figure), under which losses could be extended to $1194.80 (Nov 29 high).