22 Dec 2014
Gold stuck below USD 1200
FXStreet (Mumbai) - Gold prices on Comex traded moderately higher in Asian morning, losing about 2% in the last week. Gold prices, however, struggles to break above USD 1200 level.
Currently, gold prices trades at USD 1198.90/Oz, higher 0.24% on the day, close to fresh daily high levels of 1199.30 hit some minutes ago. Gold prices are expected to trade choppy amid thin liquidity in this holiday-shortened week. Also, a stronger dollar backed by Fed’s pledge to increase rate hike next year is likely to keep gold bulls at bay.
However, reports that holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.41 percent to 724.55 tonnes on Friday and increase in Russia's gold reserves to 38.2 million troy ounces as of Dec. 1 from 37.6 million troy ounces a month earlier, may keep floor under gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1203 (Nov 25 High), above which gains could be extended to 1209.30 (Dec 8 High) levels. Meanwhile, support stands at 1194.50 (Dec 18 Close), below which doors could open for 1191.30 (Dec 15 Low) levels.
Currently, gold prices trades at USD 1198.90/Oz, higher 0.24% on the day, close to fresh daily high levels of 1199.30 hit some minutes ago. Gold prices are expected to trade choppy amid thin liquidity in this holiday-shortened week. Also, a stronger dollar backed by Fed’s pledge to increase rate hike next year is likely to keep gold bulls at bay.
However, reports that holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.41 percent to 724.55 tonnes on Friday and increase in Russia's gold reserves to 38.2 million troy ounces as of Dec. 1 from 37.6 million troy ounces a month earlier, may keep floor under gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1203 (Nov 25 High), above which gains could be extended to 1209.30 (Dec 8 High) levels. Meanwhile, support stands at 1194.50 (Dec 18 Close), below which doors could open for 1191.30 (Dec 15 Low) levels.