Gold rebounds sharply above USD 1200

Frankfurt (Apr 10)  Gold prices on Comex edged swung back above 1200 barrier in the European session, extending its recovery mode from fresh weekly lows, largely on a short-covering rally after the recent weakness.

Gold holds above 50-DMA

Currently, gold trades higher by 0.70% at 1201.08 levels, having previously posted day’s high at 1205.30 and day’s low at 1193. Gold prices posed a solid recovery, bouncing-off 50-DMA support and climbed higher back above 1200 levels and heads for a flat close over the week amid Fed rate hike talks.

The yellow metal regained ground despite strengthening US dollar across the board mainly driven by a bout of technical buying. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.39% at 99.64 levels.

Gold Technical Levels 

The metal has an immediate resistance at 1205.78 (5-DMA) and 1210 levels. Meanwhile, support stands at 1195 (20-DMA) levels below which doors could open for 1193.41 (50-DMA) levels.

Source: FXstreet