Gold in red near $1200

FXStreet (Mumbai) - Gold prices on Comex erased previous gains and edged lower in Asia, largely as the traders resorted to profit booking after the recent strength ahead of the two-day Federal Reserve meeting kicking-off today.

Gold prices consolidates previous gains

Currently, gold trades -0.30% lower at 1199.60 levels, with the metal keeping range circa 1200 – psychological levels. Gold prices edged lower this session mainly driven by a profit-taking spree among the traders after gold prices spiked above 1200 levels yesterday amid a weaker reading of the services PMI US data which increased expectations of a delayed Fed rate hike.

Meanwhile, gold prices are expected to remain pressured as the longer duration as well shorter duration yields on the US treasuries are seen rebounding which may dull the appeal of gold as a higher yielding asset.

Also, the upside remains capped as the greenback edged slightly higher across the board with DXY trading at 96.68, up 0.08% on the day, recovering from 96.62 lows reached yesterday.

Gold Technical Levels

The metal has an immediate resistance at 1205 and 1208 levels. Meanwhile, support stands at 1194 levels below which doors could open for 1190 levels.