Gold struggles to extend gains

FXStreet (Mumbai) - Gold prices are struggling to extend gains despite the uncertainty surrounding the outcome of the Eurogroup meeting due later today.

Trades below 50-DMA

The yellow metal trades below the 50-DMA currently located at USD 1236 for the fourth consecutive session. Prices have consistently failed to rise in the last few sessions despite the Greece’s debt issue. The gains are being capped today on expectations of a short-term fix to the Greece’s debt issue. However, some amount of caution has helped Gold prices advance on safe haven appeal.

Prices are also struggling to extend gains due to the absence of fresh fundamental triggers out of the Europe and the US.

Gold Technical Levels

The metal currently trades at USD 1234.10/Oz levels; up 0.56% for the day. The immediate resistance is seen at 1236 (50-DMA), above which gains could be extended to 1243 (200-DMA). On the flip side, support is seen at 1227.30 (5-DMA) and 1216.6 levels.

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