Gold prices are struggling to extend gains above USD 1205/Oz levels as the USD index rose to one-month high, and after Federal Reserve Chair Janet Yellen indicated the US central bank was likely to raise interest rates this year.
The US Fed chair. Yellen clearly said on Friday that the central bank was poised to raise interest rates this year. Consequently, the dollar rose to its highest in a month on Monday against a basket of major currencies. US core inflation data from Friday also supported the greenback.
At the moment, the metal is trading at USD 1204.50/Oz; largely unchanged for the day. Liquidity is likely for the rest of the day ahead as British and US markets are shut for holidays.
Gold Technical Levels
The immediate resistance is seen at 1207.26 (200-DMA), above which bids could push metal higher to 1213.38 (10-DMA). On the other hand, a break below 1203.54 (100-DMA) could push the metal lower to 1199.83 (50-DMA)