5 Mar 2015
Gold resilient above 1200, despite stronger USD
FXStreet (Mumbai) - Gold prices on Comex held firmly near fresh highs in the late-Asian session as sliding global equities and weaker yields on US treasuries raised the alternative asset demand for gold, underpinning prices.
Gold rises from USD 1200
Currently, gold trades 0.30% higher at 1204.50 levels, close to fresh session highs at 1205.40 levels posted some time ago. Gold prices extended overnight gains after Chinese growth forecast downgrade to about 7% against 7.5% last year reignited concerns over global economic recovery, boosting the safe-haven demand for gold. However, gains in the yellow metal were restricted on the back of a stronger greenback at 12 year highs, supported by robust US economic data.
Meanwhile, gold prices are expected to trade cautious as traders prefer to remain on side lines ahead of ECB meeting later in the day.
Gold Technical Levels
The metal has an immediate resistance at 1206.26 (5-DMA) and 1210.27 (20-DMA) levels. Meanwhile, support stands at 1200 levels below which doors could open for 1190 levels.
Gold rises from USD 1200
Currently, gold trades 0.30% higher at 1204.50 levels, close to fresh session highs at 1205.40 levels posted some time ago. Gold prices extended overnight gains after Chinese growth forecast downgrade to about 7% against 7.5% last year reignited concerns over global economic recovery, boosting the safe-haven demand for gold. However, gains in the yellow metal were restricted on the back of a stronger greenback at 12 year highs, supported by robust US economic data.
Meanwhile, gold prices are expected to trade cautious as traders prefer to remain on side lines ahead of ECB meeting later in the day.
Gold Technical Levels
The metal has an immediate resistance at 1206.26 (5-DMA) and 1210.27 (20-DMA) levels. Meanwhile, support stands at 1200 levels below which doors could open for 1190 levels.