Gold offered near $ 1252 in Asia, despite Brexit concerns

Dhwani Mehta FXStreet

Gold prices on Comex stalled its minor overnight recovery mode and resumed declines in the Asian session, as positive equities and treasury yields dampen the safe-haven demand for the bullion.

Gold: Article 50 trigger in focus

Currently, gold drops -0.60% to $ 1247.55, having posted daily highs at $ 1251.85 and a day’s low at $ 1246.50. Gold prices fail to benefit from the looming concerns surrounding the Article 50 triggering, after the UK PM May signed the Article 50 letter.

The yellow metal also remains under pressure, as the greenback continues to consolidate yesterday’s heavy gains versus its main competitors, triggered by upbeat US economic releases, thus, keeping sentiment underpinned around the treasury yields.

Markets now look forward to the Article 50 trigger scheduled later today, which could provide some impetus to the metal, while the US pending home sales data and Fedspeak will keep the traders busy in the NA session.

Comex Gold Technical Levels

The metal has an immediate resistance at 1251.85/96 (daily high/ 5-DMA) and 1255.70 (daily pivot). Meanwhile, the support stands at 1243.91 (200-DMA) below which doors could open for 1240 (round number).

Sell 12%

Buy 88%

Avg Sell Price 1265.00

Avg Buy Price 1228.57

Liquidity Distribution

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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