Gold price slowly paring gains ahead of US session

London (May 4)  Gold prices are slowly erasing gains after being rejected at 5-DMA located at USD 1184.78, tracking the slow rise in the USD index.

Gold: Drops below hourly 50-MA

Prices now trade below the hourly 50-MA located at USD 1181.69. The yellow metal dipped as the USD index recovered from 95.18 to trade at 95.70. The strength in the US treasury yields also keeps the metal under pressure.

Ahead in the day, the metal could be influenced by the US factory orders data for March due for release today. The focus would also be on comments from Fed policymakers – Evans and Williams – who are scheduled to speak in the North American session.

Gold Technical Levels

The immediate resistance is located at 1184.7, above which gains could be extended to 1191.97 (hourly 200-MA). On the flip side, a break below 1176.6 could push the prices down to 1169.6.

Source: FXstreet