Gold futures on Comex recover losses and hover close to daily peaks, although lack momentum as the persisting risk-on trades weigh on the safe-haven.
Gold regains $ 1240
Currently, gold trades flat at 1242, easing slightly from fresh session highs reached at 1242.90 some minutes ago. Despite, the extension of the risk-on rally in the global equities, gold remains supported mainly driven by rising fund inflows. Holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, rose to 25.35 million ounces on Wednesday, the most since September 2014.
In the day ahead, the gold bulls will await the US macro releases for fresh insights into the US economic recovery, which may determine further policy moves by the Fed this year. While the main risk event for the bullion this week remains the US non-farm payrolls data due tomorrow.
Gold Technical Levels
The metal has an immediate resistance at 1250 (psychological levels) and 1260.80 (Feb 11 High). Meanwhile, the support stands at 1233.38/31 (5 & 200-DMA) below which doors could open for 1220 (daily S2).
(Market News Provided by FXstreet)