After having booked the biggest weekly gain since February, gold prices on Comex have entered a phase of bullish consolidation, which extends into the Asian trades this Monday.
Gold finds support near $ 1228/27.50
Currently, gold trades +0.06% higher at $ 1231.25, reverting towards 10-day tops reached last week at $ 1233.45. Gold continues to benefit from ongoing broad based US dollar weakness, in the wake of weaker treasury yields, after the March FOMC meeting turned out to be less aggressive on the future path of monetary tightening than markets believed.
Moreover, uncertainties surrounding Trump’s administration policies continue to underpin the sentiment around the safe-haven gold. Meanwhile, negative tone seen around the Asian indices amid holiday-thinned markets, also offer support to the gold bulls.
In the day ahead, the bullion is expected to keep the bids intact ahead of the Fedspeaks, while absence of macro events from the US combined with thin trading could keep the upside limited.
Comex Gold Technical Levels
The metal has an immediate resistance at 1233.45 (10-day tops) and 1248 (200-DMA). Meanwhile, the support stands at 1224.51/1223.59 (20 & 50-DMA) below which doors could open for 1213.18/1210 (10-DMA/ round figure).
- R3 1229.57
- R2 1229.44
- R1 1229.18
- PP 1229.05
- S1 1228.79
- S2 1228.66
- S3 1228.40
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