Gold: Offered at 10-DMA, Drops to Test $ 1270
The yellow metal failed to sustain two back-to-back sessions of gains
and fell sharply in the Asian hours, having met fresh supply almost at
Gold finds support at $1270
Currently, gold trades -0.37% lower at 1272.90, revering a dip to session lows struck at 1270.62 last minutes. The bullion came under heavy selling pressure and sold-off from near 1280 levels as resurgence of risk-on trades in the markets dulled gold’s safe-haven appeal.
Moreover, a minor-recovery staged by the greenback against its major peers after yesterday’s decline, also weighs on the gold prices. The USD index jumps 0.13% to test 94 handle. A stronger US dollar makes gold more expensive for the holders in other currencies.
Nothing of note for the metal in the day ahead, and hence, the prices will track the broader market sentiment and the USD moves heading into the BOE policy decision due later today.
Gold Technical Levels
The metal has an immediate resistance at 1279.46 (10-DMA) and 1287/90 (May 9 High/ round number). Meanwhile, the support stands at 1261 (20-DMA) below which doors could open for 1250 (psychological levels).