Gold retreats sharply below $ 1240 on profit-taking

By FXStreet Gold futures on Comex extend the retreat from yearly highs reached beyond 1260 levels and now accelerated to the downside over the last hours largely on the back of profit-taking.

Gold gives up almost $ 25 from yearly tops

Currently, gold drops -0.80% to 1237.90, having faced rejection near $ 1250 in opening trades. The bullion failed to sustain above 1250 – key psychological levels and retraced sharply as the markets resorted to profit-taking after the prices hit the highest levels since Feb last year. Further, gold paid little attention to the ongoing Asian equities rout as traders locked-in gains ahead of the main risk event for today, the US retail sales data.

On Thursday, gold printed fresh yearly highs at 1263.40 after the global market turmoil escalated and boosted flighty to safety across the financial markets, with investors seeking safety in the traditional safe-haven gold.

Gold Technical Levels

The metal has an immediate resistance at 1244.30 (1h 10-SMA) and 1250 (psychological levels). Meanwhile, the support stands at 1235.45 (1h 20-SMA) below which doors could open for 1214.02 (5-DMA).
For more information, read our latest forex news. …read more

Source:: FX Street