Gold off half-yearly tops, around $ 1265 ahead of US data

• Bulls take a breather ahead of a fresh batch of US macro releases.
• Remains supported by Fed-led growing recession fears, jump in gold ETFs.

Gold (futures on Comex) moved-off six-month highs reached at 1270.20 in the US last session and now consolidates near 1265 region, awaiting fresh trading impetus for the next push higher.

The 1%+ rally seen in the yellow metal a day before was mainly driven by an increased flight to safety, as the investors shunned risk after Fed’s hawkish twist aggravated US economic slowdown concerns and knocked-off the greenback amid a potential yield-curve inversion. The Fed hiked the interest rates for the fourth time this year on Wednesday while signaling “some further gradual” hikes.

The fears over US recession triggered a sell-off in the global equities which further boosted the demand for the traditional safe-haven gold. Moreover, in evidence of increased investor confidence in gold, holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund (ETF), jumped to their highest level in four months this week.

Looking ahead, the broader markets sentiment will continue to play a key role in gold’s price-action while markets await the US durable goods, core PCE price index and Michigan consumer sentiment data for further trading momentum, as volumes thin out into the Xmas holiday break.

Gold Technical Levels