Gold is witnessing a bout of profit taking as prices were overbought following a sharp rally that saw prices rise more than $100 in last one month to USD 1200/Oz mark.
Rejected at weekly 100-MA
The bullish momentum failed to push prices above weekly 50-MA located at USD 1200 levels in the NY session yesterday. That opened doors for a bout of profit taking. Prices now trade around USD 1188/Oz levels.
The fundamentals – negative rates, falling Fed rate hike bets – stay in support of bulls. A possible correction in the equities could become a reason for further correction in gold.
Gold Technical Levels
The immediate resistance is seen at 1200, above which prices could target 1205.80 (June 18 high). On the other hand, a break below 1183.00 (Oct 28 high) would expose 1174.50 (previous day’s high).
(Market News Provided by FXstreet)