After hitting a four week high level of $1284 during early late Asian / early European session,В GoldВ prices remained bouyant for fourth session in a row and are currently holding steady around $1282 level.
Weakness across global equity markets is boosting the precious metal's safe-haven demand. Adding to it, dour market sentiment due to fears of aВ ‘Brexit’В is also seen supportive for the yellow metal. However, a stable US Dollar seems to have capped further gains for the metal as investors brace for this week's key central bank meetings.
The recent leg of up-move for Gold was led by global risk-off sentiment, alongside a broad recovery in the greenback, and hence points towards a sustainable up-move. A follow through buying interest should now assist the commodity to head back towards retesting $1300 handle.
Technical levels to watch
From current levels, $1288-89 (May 16 high), followed by $1295 (May 06 high) are likely to act as immediate resistance levels. Momentum above this immediate resistance levels should assist the metal to move back above $1300 mark and retest a multi-month highs resistance near $1303-05 region.
On the flip side, $1271-70 area now becomes immediate support to watch for, which is closely followed by support near $1263-62 horizontal area. Weakness below $1263-62 support, the yellow metal could drift lower, but any further weakness now seems to be restricted around 50-day SMA strong support near $1250 round figure.Publication source