FXStreet (Mumbai) – Gold prices are struggling to extend gains over and above USD 1190/Oz levels, after having recovered from the low of USD 1186.9/Oz.
Gains capped by rate outlook
The metal is having a difficult time extending gains as the increasing possibility of a rate hike in the US this year has reduced the demand for the metal. Nevertheless, minor weakness seen in the USD index helped the metal recover from its Asian session low.
In the meantime, weakness in the major European equity markets is also supporting Gold. However, investors are likely to stay on the sidelines ahead of the weekly jobless claims data release in the US later today. The initial jobless claims for the week ended May 22 are expected to have declined to 270K from the previous week’s print of 274K.
Gold Technical Levels
The immediate resistance is located at 1195.12 (5-DMA), above which the metal could extend gains to 1199.85 (50-DMA). On the flip side, a break below 1183.4 could push the metal down to 1178.00 levels.
(Market News Provided by FXstreet)