Gold: Bulls back in the business, eyes $1200 mark

By FXStreet The bid tone around Gold gathered pace amid European stock market sell-off, with prices eyeing the USD 1200 mark again.

USD index slides, gold strengthens

The metal received a boost from the 0.4% slide in the USD index. The risk-off in the European equities and the resulting drop in the US index futures triggered a buying interest in the safe haven yellow metal.

However, some amount of caution can be expected on the part of the bulls, since the metal has gained more than $100 in last one month and appears overbought as per chart study.

Gold Technical Levels

The immediate resistance is seen at 1200, above which prices could target 1205.80 (June 18 high). On the other hand, a break below 1183.00 (Oct 28 high) would expose 1174.50 (previous day’s high).
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Source:: FX Street