Gold rises above USD 1240 as the European stocks fall

Frankfurt (Oct 16)  Gold is trading above USD 1240/Oz levels, tracking weakness in the European equity markets.

The Yellow metal is slowly inching higher as the major European equity markets have declined after having failed to capitalize on the positive start. The Dax is trading 0.85% lower at 8499, while the Ftse has declined 0.89% to trade at 6518 levels. The weakness in the European equities has pushed the US equity futures into the red. The S&P futures are now down by 0.69%.

Gold prices are also receiving support from the US Ten-year Treasury yields, which have declined to 2.01% from the day’s high of 2.11%. Meanwhile, the US Dollar index has inched higher by 0.30%, which may cap gains in Gold. The yellow metal is likely to move higher as the risk aversion in the equity markets continues.

Gold Technical levels

Gold, having managed to sustain above 1238 levels, is moving closer to the day’s high of 1245.50. Prices can rally to 1250 and 1263 levels if the metal manages to take out the resistance level of 1245.

Source: FXStreet