Gold recovers slightly ahead of the US data

London (Feb 23)  Gold prices recovered from the low of USD 1190.70/Oz to trade at USD 1196/Oz levels ahead of the regional manufacturing indices and existing home sales data in the US.

Strong USD weighs over Gold prices

The yellow metal came under pressure due to the strength in the US dollar ahead of the Fed. Chairman Janet Yellen’s semi-annual testimony to the Congress tomorrow. Furthermore, the fading concern regarding the Greek debt deal is capping the safe haven demand for the metal. The metal could extend losses ahead if the US Chicago and Dallas activity indices print higher than expected, while the Existing home sales rise more than the expected contraction of 0.8% month-on-month.

In the meantime, the positive action in the US equity futures and other major European equity markets could keep the metal under pressure.

Gold Technical Levels

The immediate resistance is seen at 1200, above which gains could be extended to 1206.3 levels. On the flip side, support is seen at 1190 and 1186 levels.

Source: FXstreet