Gold price extends gains, approaching USD 1200/Oz

Mumbai-India (May 13)  Gold prices rose slow and steady to another session high of USD 1198.2/Oz on the back of falling benchmark bond yields across major nations and a weak USD index.

Gold: safe haven appeal boosts prices

The yellow metal is being pushed higher, albeit at a slower pace amid signs of weakness in the major economies like China and Germany. The weaker-than-expected Chinese industrial production data coupled with a weaker-than-expected German and Eurozone Q1 GDP boosted the metal. The downward revision of GDP forecasts by the BOE also supported the metal.

Meanwhile, the USD index cooled 0.20% to 94.51, which kept Gold bears at bay. Ahead in the day, the US advance retail sales data for the month of April could influence the metal.

Gold Technical Levels

The metal currently trades at USD 1197.2/Oz. The immediate resistance is located at 1200.00, above which the gains could be extended to 1207.40. On the other hand, a break below 1193.61 (50-DMA), under which the metal could fall back to 1188.64 (10-DMA).

Soiurce: FXstreet