Gold gains nearly 1% on USD weakness

FXStreet (Mumbai) - Gold prices on Comex remained elevated during the European session, reaching fresh three day highs largely amid persistent US dollar weakness, making gold more attractive to investors.

Gold declines from 1211.70 levels

Currently, gold trades higher by 0.89% at 1207.90 levels, having posted fresh session highs at 1211.70 levels some time ago. Gold prices traded in green as US dollar came under pressure following Yellen’s comments. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, declined -0.28% to 94.26.

A weaker US currency makes gold prices less expensive in other currencies and so more attractive to foreign investors.

Moreover, gains in gold were accelerated on upbeat Chinese manufacturing data which calmed demand concerns from the world’s second largest yellow metal consumer, China.

Gold Technical Levels

The metal has an immediate resistance at 1213.80 (100-DMA) and 1224.57 (20-DMA) levels. Meanwhile, support stands at 1200 levels below which doors could open for 1190 levels.

NZD/USD rises above 0.7550, gains capped at 50-DMA

The Kiwi gained sharply against the US dollar, taking the NZD/USD pair above 0.7550, although further gains are being capped at the 50-DMA located at 0.7555 levels.
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