Back
20 Apr 2015
Gold erases gains, back circa USD 1204/Oz
FXStreet (Mumbai) - Gold prices on Comex shaved-off sharp gains witnessed in the early European trades and trades almost unchanged, mainly driven by a solid comeback staged by the US dollar across the board dampened the demand for gold as an alternative asset.
Gold retreats from 1208.70
Currently, gold trades flat at 1203.90 levels, having previously posted day’s high at 1208.70 and day’s lows at 1202.50. Gold prices erased gains amid a renewed demand for the US dollar and higher European equities dampening the attractiveness for gold as a higher yielding asset.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades at fresh session highs of 97.98 levels, recording a 0.32% gain on the day.
Moreover, the upside in prices remains capped amid a lack of robust physical demand with no significant uptick in physical demand from top consuming region Asia.
Earlier, gold prices gained largely on the back of while China’s latest stimulus measures in an effort to lift the nation’s economic growth boost the metal. China is the world’s second largest consumer of the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1209 and 1212.50 levels. Meanwhile, support stands at 1200 levels below which doors could open for 1197 levels.
Gold retreats from 1208.70
Currently, gold trades flat at 1203.90 levels, having previously posted day’s high at 1208.70 and day’s lows at 1202.50. Gold prices erased gains amid a renewed demand for the US dollar and higher European equities dampening the attractiveness for gold as a higher yielding asset.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades at fresh session highs of 97.98 levels, recording a 0.32% gain on the day.
Moreover, the upside in prices remains capped amid a lack of robust physical demand with no significant uptick in physical demand from top consuming region Asia.
Earlier, gold prices gained largely on the back of while China’s latest stimulus measures in an effort to lift the nation’s economic growth boost the metal. China is the world’s second largest consumer of the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1209 and 1212.50 levels. Meanwhile, support stands at 1200 levels below which doors could open for 1197 levels.