Gold hits fresh 3-week highs above USD 1217

FXStreet (Mumbai) - Gold prices on Comex pierced through the 1200 marker and extended gains to fresh three week highs after dismal US jobs data placed Fed’s rate-hike expectations on the back seat, driving the demand for gold as a higher yielding asset.

Gold testing 200-DMA

Currently, gold trades higher at 1217 levels, bouncing-off fresh three week highs at 1218.70 levels. Gold prices climbed higher sharply after bearish US non-farm payrolls report may prompt the Fed to delay its rate-hike decision pushed US treasury yields to fresh eight week lows boosting gold’s appeal as a better investment bet.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies recovered mildly and trades at 96.68 levels.

Meanwhile, traders now focus on Wednesday’s Fed’s March Meeting minutes release for fresh cues on gold prices.

Gold Technical Levels

The metal has an immediate resistance at 1218.86 (200-DMA) and 1225 levels. Meanwhile, support stands at 1214 (100-DMA) levels below which doors could open for 1210 levels.

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