Gold prices turned negative in the US session as USD index extended gains, while stocks recovered early losses.
Rejected at 5-DMA
Metal was offered after it failed to sustain above 5-DMA level of $1257 earlier today. Moreover, safe haven demand dropped as Asian equities rose to two-month high and the European stocks also began the week on a positive note.
The offered tone gathered further pace in the US session as USD index extended gains to trade almost 0.40% on the day. Even the early losses in the US equities failed to support the yellow metal.
Gold Technical Levels
Prices currently hover around $1245; down 1.15% on the day. The immediate hurdle is seen at $1259.36 (5-DMA), above which prices could test 1263.36 (Feb 11 high). On the other hand, a break below 1242.95 (Mar 9 low) would expose 1224.73 (Mar 2 low).
(Market News Provided by FXstreet)