Gold struggles to extend gains

London (Jan 27)  Gold prices are having a hard time extending gains from near day’s high levels as markets seem to shrug-off the victory of anti-bailout Syriza party in Greece.

The metal now trades at USD 1282.60/Oz levels; up 0.18% for the day. The metal is unable to rise above the high of USD 1284.80/Oz despite signs of weakness in the USD index; which is down 0.23% at 95.07 levels. The 10-year Treasury yields are also down 1.9 basis points to 1.808%. The exhaustion also contradicts weakness in the European equities and the US index futures. The German Dax is down 0.58%, while the London’s Ftse is down 0.33%. Meanwhile, the S&P futures are down 0.39%.

Gold Technical Levels

The immediate support is seen at 1280.00 (hourly 10-SMA), under which the metal could re-test 1275.6 levels. Meanwhile, resistance is seen at 1281.81 (hourly 200-SMA) and 1287.10 levels.

Source: FXstreet