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31 Dec 2014
Gold holds gains above USD 1200
FXStreet (Mumbai) - Gold prices on Comex traded higher in the Asian morning, extending gains from the previous session as safe haven demand boosted bids for the yellow metal.
Currently, gold trades at USD 1202.20/Oz, up 0.15% on the day, having posted more than one-week high at 1210.90 levels in the previous session. Gold prices rallied in the US trading, breaking above USD 1200 mark as sliding global equities and looming Greek concerns sparked risk-off sentiments in the market as traders sought for safe haven assets like and US treasury bonds. In a risk off environment, assets like Treasury bonds and gold tend to gain, as traders shield their investments there to protect them from losses.
Adding to the gains in gold prices, the US dollar also slipped against a basket of major currencies on profit taking after a recent rally to a multi-year peak. A weaker US dollar makes gold less-expensive for holders of other currencies.
Gold Technical Levels
The metal has an immediate resistance at 1210.90 (Dec 30 High), above which gains could be extended to 1223.90 (Dec 16 High) levels. Meanwhile, support stands at 1199.86 (20-DMA), below which doors could open for 1194.74 (5-DMA) levels.
Currently, gold trades at USD 1202.20/Oz, up 0.15% on the day, having posted more than one-week high at 1210.90 levels in the previous session. Gold prices rallied in the US trading, breaking above USD 1200 mark as sliding global equities and looming Greek concerns sparked risk-off sentiments in the market as traders sought for safe haven assets like and US treasury bonds. In a risk off environment, assets like Treasury bonds and gold tend to gain, as traders shield their investments there to protect them from losses.
Adding to the gains in gold prices, the US dollar also slipped against a basket of major currencies on profit taking after a recent rally to a multi-year peak. A weaker US dollar makes gold less-expensive for holders of other currencies.
Gold Technical Levels
The metal has an immediate resistance at 1210.90 (Dec 30 High), above which gains could be extended to 1223.90 (Dec 16 High) levels. Meanwhile, support stands at 1199.86 (20-DMA), below which doors could open for 1194.74 (5-DMA) levels.