Gold stalls rebound, back below $ 1230

Gold stalled its rebound from five-month troughs and drifted back below $ 1230 barrier, despite broad based US dollar corrections and weaker treasury yields.

Gold remains capped below 5-DMA

Currently, Comex gold futures trade 0.50% higher at 1227.95, having posted daily highs at 1231.05 last hour. The yellow metal trims gains, although remains strongly bid amid a minor-corrective slide seen in the treasury yields after the recent upsurge.

While the greenback also tracks the yields lower and therefore, lends support to the recovery in oil prices from five-month lows of $1211 reached in the last US session. While risk-off trades amid falling Asian equities also added to the renewed upside in gold prices.

Over the last hour, the bullion is receding a part of today’s rebound as investors look to take profits after the bulls failed to take-out 5-DMA resistance located just ahead of $ 1233 levels.

Focus now shifts back towards US fundamentals, with the retail sales data due on the cards later today. While Fed Chair Yellen’s speech due in the second half of this week will be closely eyed  for fresh hints on the US interest rates outlook.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1231.80 (daily R1) and 1233.50 (5-DMA). Meanwhile, the support stands at 1221.40 (daily pivot) below which doors could open for 1213.05 (daily S1).

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