FXStreet (Mumbai) – Gold bulls appear exhausted after pulling the metal higher by at least $50 since mid-March. Prices have trimmed gains to trade below 200-DMA at USD 1129.40.
Equities on the rise, cap safe haven demand for Gold
The uptick in oil is finally helping equities stabilize. The US index futures indicate the indices are likely to open on a positive note. Even the major European indices have taken back their losses. Consequently, the safe haven demand for the metal dropped, pushing the prices back below 200-DMA from the daily high of USD 1133.12 levels.
The focus now is on the US ISM non-manufacturing number. Traders would also keep an eye on US stocks.
Gold Technical Levels
The immediate resistance is seen at 1131.09 (previous day’s high), which if taken out shall open doors for a rally to 1136 (61.8% of Oct high-Dec low). On the other hand, a break below 1128.12 (Jan 27 high) could shift risk in favor of a drop to 5-DMA at 1123.44.
(Market News Provided by FXstreet)