Gold pares gains, nears USD 1200 mark

FXStreet (Mumbai) - Gold prices pared gains to trade closer to the USD 1200 mark after the drop in the US weekly jobless claims pushed the US Dollar higher against major currencies.

Gold: Will fall below USD 1200/Oz

The metal currently trades at USD 1202.9/Oz, after having declined steadily from the high of USD 1219.3 set earlier today. The metal could extend the drop below USD 1200/Oz in case the Markit US services PMI surprises markets to the upside. Meanwhile, a recovery in the US stock markets can also weigh over the safe haven metal.

On the other hand, a weak US services PMI print could help the yellow metal sustain above USD 1200.00/Oz levels.

Gold Technical Levels

A break below the immediate support at USD 1200 could push the prices lower to 1193.36 (5-DMA). On the flip side, resistance is seen at 1214.83 (100-DMA) and 1222.72 (200-DMA).

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USD/JPY bounces off 118.30; back to 119.00

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