Gold consolidates near 3-week tops, risk-off supports

Risk-off sentiment extends into Asia, which keeps the safe-haven bids for the yellow metal intact, helping gold prices on Comex to consolidate yesterday’s solid gains.

Gold trades below 200-DMA at $ 1246.89

Currently, gold trades modestly flat at $ 1245.35, having posted fresh three-week tops at $ 1247.65 in the US last session. Gold prices stalled its bullish run and enters a phase of consolidation in Asia, as the US dollar attempts a minor-correction across the board after the recent decline.

The bulls remain supported amid a sell-off in the Asian equities and negative treasury yields, which boosts the demand for gold as a safe-haven. Moreover, latest Japanese government reports of North Korea having launched several missiles on Wednesday, also added to the risk-off market profile and keeps the bullion largely underpinned.

Gold rallied hard on Tuesday to reach fresh multi-week tops just shy of $ 1250 barrier after a spell of risk-aversion hit markets over renewed doubts over Trump’s administration policies.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1247.65 (3-week tops) and 1258.03 (Classic R2/ Fib R3). Meanwhile, the support stands at 1237.17 (5-DMA) below which doors could open for 1224.86/1223.49 (50 & 20-DMA).