Gold erases gains, back in the red

By FXStreet FXStreet (Mumbai) – Gold prices erased moderate gains ahead of the US opening bell on the back of an uptick in the USD index.

Rejected at USD 1124.7/Oz

Prices turned lower from the high of USD 1124.70/Oz levels seen in the European session, tracking the 0.5% rise in the USD index. Meanwhile, the risk-on rally across the European markets also keep a lid on the gains in the yellow metal.

The S&P 500 futures indicate the index is likely to open 19 points higher. Consequently, the metal, currently trading at USD 1119/Oz, is pointing southwards. Meanwhile, investors will also keep an eye on the rate hike expectations represented by the fed fund futures and the 2-year treasury note.

Gold Technical Levels

The immediate resistance is located at 1127.16 (10-DMA), above which the spot could re-test 1132.90 (Nov 2014 low). On the other side, support is located at 1117.40 (50-DMA) and 1100 levels.
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Source:: FX Street