Gold Rallies 1%, Hits Fresh Weekly Highs at $ 1260
Gold extends
its recovery from the previous slide and now runs through fresh bids in
the European session, taking the prices to fresh one-week tops.
Gold bounces-off key support at $ 1242
Currently,
gold jumps +1.02% to 1258.20, easing-off fresh weekly highs scored at
1260.24 in the last hour. The bullion continues to benefit from cautious
environment persisting in the European markets, as the traders remain
wary ahead of the key ECB decision.
Moreover, subdued trading
activity seen around the US dollar against its major peers, when
measured by the US dollar index, further adds to the bullish momentum in
the gold prices. The USD index drops -0.05% to trade around 94.50
levels.
Further, gold tracks the strong gains seen in its close
peer, silver, which trades at eleven-month tops. In the day ahead, gold
awaits the ECB meeting for fresh incentives on the USD moves. The ECB is
expected to keep its monetary policy settings unchanged policy change
at its meeting due later today.
Gold Technical Levels
The metal has an immediate resistance at 1262.77 (Apr 12 High) and 1270 (round number/ Mar 17 High). Meanwhile, the support stands at 1244 (10-DMA/ 1h 200-SMA) below which doors could open for 1237/35 (50 & 20-DMA).
