Gold trims gains, but stays near 9-month highs

By FXStreet Gold prices backed off from the high of USD 1214.67 to trade around USD 1207; its highest level since late May 2015.

Safe haven assets on the rise

The traditional safe havens – Gold, JPY, Treasuries – continue to rise amid risk-off in the equities. Yellen’s non-committal stance failed to calm market nerves, which is evident from the drop in Japan’s Nikkei index and moderate drop in the Stoxx 50 index.

Meanwhile, the flat action in the USD index is offering little cues to the metal. The drop from the daily highs appears due to profit taking. Later in the day, the US weekly jobless claims and the sentiment on Wall Street could influence the metal.

Gold Technical Levels

The immediate resistance is seen at 1214.67 (daily high), which if taken out shall open doors for a rally to 1228.10 (May 2015 High). On the other hand, a break below 1200 would shift risk in favor of a technical correction to 1192 (5-DMA).
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Source:: FX Street