Gold attempts gains in Asia, focus shifts to ECB

Gold appears to have brought a halt to a two-day decline and attempts gains in the Asian trades, amid stalled USD recovery and subdued US treasury yields.

Gold capped below 5-DMA at $ 1174

Currently, Comex gold futures peek into the green zone around 1171.05, recovering from session lows of $ 1169 levels. Gold prices struggle hard to take on the recovery from ten-month lows, now finding some support from renewed weakness seen around the greenback across the board. A weaker US dollar makes the USD denominated gold less expensive for the holders in foreign currencies.

Moreover, mixed performance witnessed in the Asian equities also lifts the sentiment around the safe-haven gold. Markets now look forward to the ECB decision due tomorrow and the FOMC meeting due next week for next direction on the commodity.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1174 (5-DMA) and 1177.20 (10-DMA). Meanwhile, the support stands at 1167.10 (Dec 6 low) below which doors could open for 1157 (multi-month low).