FXStreet (Mumbai) – The yellow metal erased losses and trades modestly flat heading into the European opening bells as resumption of downslide in the major Asian markets extend, re-igniting the safe-haven bids for the gold.

Gold capped at $ 1156.20

Currently, gold trades flat at 1153.30, recovering from 1150.90 lo0ws reached in the Asian session. The yellow metal recovered losses as it continues to benefit from its status as the ultimate safe-haven as the renewed sell-off in risk assets accelerated, but the upward momentum was curbed by a deteriorating inflation outlook.

Moreover, the gains remain capped also as the greenback poses a tepid recovery after the massive battering seen yesterday. The US dollar index, a virtual gauge of greenback’s strength, trades 0.29% higher at 93.65.

Gold Technical Levels

The metal has an immediate resistance at 1160 and 1164 levels. Meanwhile, support stands at 1150.90 (Today’s Low) below which doors could open for 1148.50 (July 8 Low) levels.

The yellow metal erased losses and trades modestly flat heading into the European opening bells as resumption of downslide in the major Asian markets extend, re-igniting the safe-haven bids for the gold.

(Market News Provided by FXstreet)

By FXOpen