Gold Regains 5-DMA in Asia, ECB in Focus
Gold trades moderately higher in the Asian trades, underpinned by risk-off markets and a broadly lower US dollar, as we head towards the ECB policy decision on the interest rates.
Gold eyes 100-DMA
Currently, gold now trades +0.11% higher at 1214.59, flirting with session highs reached at 1215.91 earlier this session. The bullion extends its recovery from just ahead of 1200 levels and now males headways towards 100-DMA at 1221 as the bulls remains supported amid aggressive selling seen in the Asian equities, which reinforces risk-off trades in the markets and boosts gold’s safe-haven appeal.
Moreover, the US dollar is extending its retreat from multi-week tops against its major competitors, which also favours the dollar priced-in yellow metal. A weaker US dollar makes gold cheaper for holders in foreign currencies. The USD index drops -0.18% to 95.25 levels.
Next in focus for the metal remains the ECB policy decision, which is expected to have major impact on the EUR/USD pair, eventually influencing gold price-action.
Gold Technical Levels
The metal has an immediate resistance at 1221 (100-DMA) and 1225 (round number). Meanwhile, the support stands at 1205.90 (Jun 1 Low) below which doors could open for 1200 (key support).