Gold found takers below 10-DMA level of $1128 levels and recovered to trade largely unchanged on the day around $1230/Oz levels.
Rate cuts in Asia support prices
The demand for the metal remains intact after China rate cut increased prospects of retaliatory action by other central banks in Asia. A fiscally prudent budget by Indian government has also opened doors for a rate cut by Reserve Bank of India.
Consequently, the demand for gold from top two consumers could increase and that appears to be supporting the yellow metal.
The metal traders now await the release of the US monthly ADP private sector employment report.
Gold Technical Levels
The metal printed a daily low of $1224.10/Oz levels, before recovering to trade around $1230/Oz. The immediate resistance is seen at 1241.88 (Feb 29 high), above which the gains could be extended to 1253.32 (Feb 24 high). On the other hand, a break below 10-DMA at 1227.90 would open doors for a slide to 1210.80 (Feb 26 low).