Gold attempting another run towards 200-DMA

Dhwani Mehta FXStreet

Gold trades modestly flat in the Asian trades this Wednesday, little affected by mixed Chinese economic releases, as the bulls appear to gather pace to reclaim 200-DMA barrier.

Gold holds well above 5-DMA at $ 1258.20

Currently, gold trades almost unchanged at 1263.40, retreating slightly from daily tops previously posted at $ 1264.75. Gold is seen consolidating the upside amid persistent broad based US dollar weakness, while the yellow metal paid little attention to mixed Chinese data dump.

Focus remains on the treasury yields, especially on the shorter-end of the curve, which reflects the short-term interest rates expectations, and therefore, has a significant impact on the USD-sensitive gold. Meanwhile, the USD index trades -0.08% lower at 97.82.

Gold Technical Levels

The metal has an immediate resistance at 1267 (200-DMA) and 1270 (round number). Meanwhile, the support stands at 1258.27 (5-DMA) below which doors could open for1250.53 (Oct 11 low).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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