Gold hovers around 50-DMA

Gold has recovered from its daily lows and now trades just above 50-DMA level of $1234.60 levels.

Weak equities supports gold

The metal finally found takers as weakness in energy and mining shares pushed European stocks lower. Prices thus recovered from the low of $1229.76 levels. The metal clocked a high of $1240 levels in early Asia on fears the sell-off in oil would lead to a serious risk aversion in the markets.

Ahead in the day, the focus is likely to be on sentiment in the US equity markets and action in the treasury yields.

Gold Technical Levels

The immediate hurdle is noted at $1240 (Asian session high), above which prices could target $1244.10 (Mar 30 high). On the other hand, a violation of immediate support at $1230 (daily low) would expose $1207.47 (Mar 28 low).