Having ended on a weaker note on Friday despite broad based USD selling, Gold is having a tough time breaching 5-DMA hurdle at $1259.36 levels.
Risk-on capping gains
Asian stocks hit two-month high and the major European equities too have extended the risk-on seen on Friday. Consequently, the safe haven demand for the metal dropped. Furthermore, a 0.20% rise in the USD index is capping gains in the metal as well.
Meanwhile, downside in the metal is being capped by negative rate strategy adopted by major central bankers across the globe. At the time of writing, the metal was trading around $1259/Oz levels.
Gold Technical Levels
The immediate hurdle is seen at $1259.36 (5-DMA), above which prices could test 1263.36 (Feb 11 high). On the other hand, a break below 1242.95 (Mar 9 low) would expose 1224.73 (Mar 2 low).