FXStreet (Mumbai) – Gold prices recovered from the daily lows to trade with marginal gains around USD 1093/Oz levels, but upside is being capped by the sharp gains in the European equities.
Gold trades around 10-DMA
Prices hover around the 10-DMA seen at USD 1093. The metal found bids after it recovered above 1087.57 (38.2% of Dec low-Jan high) and thus recovered losses. As of now the upside is being capped due to the drop in safe haven demand amid stock market rally. The Euro Stoxx 50 index currently trades higher by more than 2%.
The US data calendar is empty; hence the metal remains at the mercy of the action in the European stocks and on the Wall Street.
Gold Technical Levels
The immediate resistance is seen at 1097.37 (23.6% of Dec low-Jan high), above which the prices could extend gains 1106 (100-DMA). On the other hand, a break below the immediate support of 1085.45 (daily low) would expose 1079.66 (50% of Dec low-Jan high).
(Market News Provided by FXstreet)