Gold falls below 100-DMA as US index futures rise along with US dollar

Frankfurt (Dec 11)  The yellow metal extended losses during the European session as US index futures gained strength, while the US dollar index inched higher.

Gold now trades 0.82% lower at USD 1219.30/Oz levels, while the US dollar index rose 0.16% to 88.40 levels. Meanwhile, the US equity futures have moved into a positive territory. The DJIA futures are up 0.34%, while the S&P 500 futures are up 0.38%. The positive move in the US equity futures is mainly driven by stability in the major European indices. The Germany’s DAX advanced 0.66%, while the France’s CAC gained 0.30%. The London’s Ftse is trades more or less unchanged. Moreover, the stability in the equity markets has reduced the safe haven appeal of the yellow metal.

Furthermore, low expectations from the European Central Bank’s (ECB) second round of TLTRO is also hurting the yellow metal. Markets do not expect a significant expansion of the ECB’s balance sheet post the TLTRO exercise today. Thus, the yellow metal has been on a declining trend during the European session.

Gold Technical Levels

Gold has an immediate support located at 1218.40, under which losses could be extended to 1208 (10-DMA). Meanwhile, resistance is seen at 1222 (100-DMA) and 1239.00 levels.

Source: FXstreet