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Gold stuck between 5-DMA and 50-DMA

FXStreet (Mumbai) - The technical levels of 5-DMA and 50-DMA have restricted the yellow metal in a narrow range since the Asian session today.

Gold traded 0.27% lower at USD 1204.40/Oz levels at the time of writing, compared to the previous session’s close of USD 1207.70/Oz. Moreover, the gains in the metal have been capped around the 5-DMA level located at 1207, while the metal has managed to sustain gains above the 50-DMA located at 1200.00 levels.

The yellow metal has been unable to extend gains since the US dollar index recovered to trade 0.12% higher at 88.76 levels. The metal had gained yesterday since the rebound in the single currency post ECB meet, triggered a bout of correction in the dollar index.

Gold Technical Levels

Gold has an immediate resistance at 1207 (5-DMA), above which gains could be extended to 1221 levels. Meanwhile, a break below 1200 (50-DMA) shall open doors for the re-test of 1190 levels.

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