Gold prices are trading in the sideways manner around $1240/Oz levels amid as investors await US ISM manufacturing PMI data release.
Risk-on in Europe caps gains
The bullish momentum in the metal ran out of steam at a high of $1248.57 levels on account of a rally in the European stocks. The pan-European Euro Stoxx 50 strengthened 1% and capped safe haven demand for the metal.
Meanwhile, PBOC’s rate cut and expectations of RBI rate cut and ECB easing is supporting the metal. The US ISM manufacturing PMI figure due later today could alter Fed rate hike bets and influence the metal.
Gold Technical Levels
The immediate resistance is seen at 1248.57 (daily high), above which the gains could be extended to 1253.32 (Feb 24 high). On the other hand, a breakdown of 1212 (23.6% of Dec low-Feb high) could see the prices drift lower to 1200 levels.
(Market News Provided by FXstreet)