Gold bulls ran out of steam again as prices neared $1280 levels on signs of stability in the USD index following Thursday’s sharp sell-off.
Eyes European equities
ECB’s Bazooka was not well received by the markets, which is evident from a 2% drop seen in Germany’s DAX index. Gold strengthened on account of haven appeal, rising from $1237 to $1273 levels post ECB decision.
The metal could continue to track the European indices today. Meanwhile, USD index is showing signs of stability, which could weigh over metal prices.
Gold Technical Levels
Prices currently trade around $1270/Oz levels. The immediate support is seen at 1255.82 (10-DMA), under which prices could drop to 1237 (previous day’s low). On the other hand, a break above 1283 (daily high) would open doors for a test of psychological resistance of 1300 handle.
(Market News Provided by FXstreet)