Gold prices ran into offers at/above $1240 for the fourth time in the last nine days as the safe haven demand dropped due to positive action in the equities in Asia and Europe.
Metal turns negative
Prices now trade 0.44% or $5.5 lower on the day around $1233.50/Oz levels. The area at/above $1240 has been swarmed by offers throughout last one week or so. Repeated failures to sustain above $1240 could be an indication the metal may be running out of steam.
As of now, a 1% rise in the Stoxx 50 index is keeping the metal under pressure. Later today, the US Q4 preliminary GDP and personal spending report could influence the metal.
Gold Technical Levels
The immediate resistance is seen at 1240, above which prices could rise to 1253.32 (Feb 24 high). On the other hand, a break below 1220.60 (Feb 24 low) would open doors for a slide to 1212 (23.6% of Dec low – Feb high).