Gold capped below $ 1195 in Asia, awaits Yellen

By FXStreet Having hit $ 1200 mark last Friday, the yellow metal continues to consolidate the upside below the last, now awaiting fresh hints on the Fed rate hike outlook from Fed Chair Yellen’s testimony due later today.

Gold profit-taking extends into Asia

Currently, gold drops -0.64% to 1190.80, reversing a spike to daily highs reached at 1194.80 in the last hour. The bullion failed once again near 1200 threshold in the last NY session, and extends its retreat thereon on the back of profit-taking ahead of Fed Yellen’s speech later today.

Gold was largely indifferent to the persisting risk-off trades amid falling Asian equities, as today’s gold price action remains exactly a replica of Tuesday’s Asian trades.

Later today, focus now remains on the Fed Chair Yellen’s testimony on the Semi-annual Monetary Policy Report before the Senate Banking Committee for cues on whether Fed still remains on track to raise rates this year as global economic outlook continue to worsen.

Gold Technical Levels

The metal has an immediate resistance at 1200 (psychological levels) and 1204 (May 31 High). Meanwhile, the support stands at 1187/1184.04 (1h 50-SMA/ daily S1) below which doors could open for 1180/1179.06 (round number/ 5-DMA).
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Source:: FX Street