The weaker US dollar helped the metal hold the crucial support levels at 1217.00. The yellow metal initially took advantage of the weaker dollar and moved to buying at $1232.60 at the end of the day. The metal spiked after Sweden announced rate cuts below zero and a bond-buying program. The Riksbank lowered its benchmark rate to minus 0.1% from zero and said it would buy government bonds worth 10 billion Swedish krona ($1.2 billion). The US economy data disappointed the economists. The US retail sales fell very sharply to 0.8% in January after a 0.9% drop in December. If a daily close is below $1,217.00, bears can challenge $1,207.00, $1,204.00, and $1,199.00. The weekly key support level is set at $1,216.00. Today, the metal opened on a bullish tone. We recommend fresh selling only below 1216.00. Gold has strong resistance at 1246.00.
Resistance: $1,226.00, $1,231.00, $1,245.00.
Support: $1,216.00, $1207.00, $1,199.00.
Resistance: $1.1232.00, $1239.00, $1246.00.
Selling below $1,216.00.
The material has been provided by InstaForex Company - www.instaforex.com