Gold hovers around $1250

Supported by a weaker US Dollar, Gold on Tuesday rallied nearly 1.5% taking it to a one week high level before settling above $1250.


Gold downside seems limited

After yesterday’s smart gains and a follow through uptick to $1258 during Asian session, the yellow metal now seems to consolidate and is currently hovering around $1250 mark ahead of the European session open.

Although, the metal could witness some profit taking from current levels, the drop is likely to find renewed buying interest near $1242-39 immediate support. However, sustained weakness below $1240 seems to increase the possibilities of lower levels, possibly towards $1226-24 area.

On the upside, day’s peak near $1258 seems to provide immediate resistance. Should it manage to clear this immediate hurdle smoothly, the yellow metal seems all set to retest March closing high levels resistance near $1273-75 region.