Gold: Supply caps minor-recovery near 5-DMA

The renewed uptick seen in gold prices on Comex lost legs just below 5-DMA at $ 1233.90, sending the rate back towards $ 1230 levels.

Gold approaches 200-DMA at $ 1265

Currently, gold trades -0.40% lower at $ 1230.50, eyeing for a retest of $ 1230, daily lows.  Gold remains on the back foot, having failed every recovery attempt, as risk on sentiment remains in vogue and underpins the sentiment around treasury yields, eventually lifting the USD demand across the board. Dollar extends gradual rebound

Risk reset is the key theme so far this Monday, in wake of easing political tensions between US and Japan after the Trump-Abe Summit did not involve heated talks about the exchange rate and bilateral trade.

Hence, safe-havens such as gold, suffer heavily amid risk-on market profile, as investors seek to take the yield advantage and dump the non-yielding yellow metal.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1235.55 (Daily high) and 1240 (round number). Meanwhile, the support stands at 1229.14 (10-DMA) below which doors could open for 1215.50 (20-DMA).