Gold plunges over 2%, on its way to $ 1200?

By FXStreet The selling interest seen around the yellow metal accelerates in Europe, drowning the prices more than $ 20 from daily tops reached near 1227.

Gold eyes $ 1200 support

Currently, gold drops -2.17% to 1204.10, retreating slightly from fresh session lows struck at 1203.20 last minutes. The bullion extends the bearish momentum further in the mid-European session as the risk-on market profile continues to bolster the USD bulls.

Moreover, intensifying Brexit fears drag the EUR and GBP lower against the greenback, and therefore, lifts the USD index sharply higher to 97.22 levels, +0.62% on the day. Stronger greenback makes gold more expensive for foreign buyers.

Meanwhile, the European indices are rallying +1.20 to +2.40%, which continues to boost the appetite for riskier assets. Later today, only a flash factory PMI report from the US is due on the cards ahead of an eventful US macro calendar.

Gold Technical Levels

The metal has an immediate resistance at 1215 (1h 100 & 200-SMA) and 1122/23 (1h 50-SMA/ 10-DMA). Meanwhile, the support stands at 1200 (key psychological level) below which doors could open for 1196.50/91 (Feb 17 Low/ 20-DMA).
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Source:: FX Street