Gold price holds gains near $ 1188 ahead of US data

Mumbai-India (May 28)  Gold prices on Comex defend mild gains in the mid-Asian session, easing off a spike to session highs at 1192.40 in early Europe. Markets now await a fresh set of US economic releases due later in the US session.

Gold back below $ 1190

Currently, gold trades 0.13% higher at 1188.10, having posted day’s high at 1192.40 and day’s lows at 1186.80. Gold kept gains as the US dollar remained in red during most of the European session in running. Moreover, sliding European stocks also boosted gold’s attractiveness as a higher yielding asset.

The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades -0.08% lower at 97.29, retreating from fresh session highs reached at 97.46. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.

Moreover, US weekly jobless claims and pending home sales due later today are likely to say more about the health of the US economy, having major impact on USD moves and eventually on the yellow metal prices.

Gold Technical Levels

The metal has an immediate resistance at 1192.50 and 1195 levels. Meanwhile, support stands at 1182 below which doors could open for 1178 levels

Source: FXstreet