Gold off 3-week highs around USD 1209

London (mar 26)  Gold prices on Comex remains lifted above 1200 levels, although retreated from fresh three week peak on a bout of profit-taking after gold prices pierced through the crucial 100-DMA.

Gold supported above 50-DMA

Currently, gold trades higher by 0.94% at 1208.10 levels, unable to sustain at higher levels beyond 100-DMA. Gold remains elevated largely supported by the ongoing Saudi-Yemen conflicts which keeps the safe-haven demand for the yellow metal intact.

Also, a broadly softer US dollar keeps the gold prices supported. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies is lower by -0.39 % at 96.70 levels.

Meanwhile, traders will be eyeing the release of weekly unemployment insurance numbers in the US. The claims are expected to stay low after some volatility in February. The direction over the next two days will be shaped by several eagerly anticipated speeches and major economic reports that have the potential to surprise.

Gold Technical Levels

The metal has an immediate resistance at 1214.50 (100-DMA) and 1223.11 (200-DMA) levels. Meanwhile, support stands at 1200 levels below which doors could open for 1194 (5-DMA) levels.

Source: FXstreet