Gold remains on the front foot in the Asian trading, with flight to safety back in vogue amid increased Hard-Brexit concerns as we head towards the UK PM May’s speech due later today.
Gold benefits from risk-off
Currently, gold trades with size-able gains and hits fresh session highs at $ 1205.45, heading for a retest of multi-week highs reached yesterday at $ 1208.45. After a brief profit-taking spree witnessed in the last US session, the yellow metal regained lost momentum and once again took advantage of persisting risk-off market profile, as Hard-Brexit fears continue to plague markets, weighing heavily on most risk assets such as equities, treasury yields etc.
While subdued trading activity seen around the greenback versus its major rivals also adds to the renewed upside seen in gold prices. A weaker US dollar makes gold cheaper for the buyers in foreign currency.
Attention now turns towards the UK PM May’s speech on Brexit and Fedspeaks for further impetus on the shiny metal.
Comex Gold Technical Levels
The metal has an immediate resistance at 1208.45 (2-month tops) and 1210 (round figure). Meanwhile, the support stands at 1201.15 (5-DMA) below which doors could open for 1195.32 (daily S2).
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