Gold prices on Comex is on a minor-corrective slide in Asia, wavering in a tight range below 200-DMA located at $ 1258.15.
Gold awaits Tuesday’s Trump congressional address
Currently, gold trades marginally lower at $ 1257.65, fading a spike to daily highs reached at $ 1259.85. Gold is seen struggling hard to extend its recent bullish momentum this Monday, as the bulls take a breather after last week’s extensive rally spurred by dwindling March Fed rate hike bets and another disappointing speech by the US President Trump.
The US treasury yields remain on the back foot amid a lack of clarity on Trump’s fiscal spending plans, with the benchmark 10-year yields hitting one-month lows, which in-turn makes gold more attractive as an alternative investment asset.
Also, reports of a new independence Scottish referendum due on the cards in the coming months, also spooked investors’ sentiment and sent the Asian equities lower, thereby boosting the safe-haven gold.
Focus shifts towards the US durable goods, pending homes sales and Fed’s Kaplan’s speech due later in the NA session for further momentum on the yellow metal. While Trump’s speech before the Congress scheduled tomorrow is likely to provide fresh direction for the metal.
Comex Gold Technical Levels
The metal has an immediate resistance at 1261.15 (3-month high) and 1270 (round figure). Meanwhile, the support stands at 1250.70 (5-DMA) below which doors could open for 1244.41 (10-DMA).
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