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Gold defends mild gains near USD 1204/Oz

FXStreet (Mumbai) - Gold prices on Comex trimmed gains from early Asia and trades moderately higher in the early European morning as PBoC additional stimulus and subdued Asian equities keep the gold prices buoyed.

Gold holds above 5-DMA

Currently, gold trades higher at 1204.50 levels, having previously posted day’s high at 1206.30 nad day’s lows at 1202.50. Gold prices remain supported on a muted US dollar amid a data-light economic calendar while China’s latest stimulus measures in an effort to lift the nation’s economic growth boost the metal. China is the world’s second largest consumer of the precious metal.

Meanwhile, the US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades muted at 97.70 levels.

However, the upside in prices may remain capped amid a lack of robust physical demand with no significant uptick in physical demand from top consuming region Asia.

Gold Technical Levels

The metal has an immediate resistance at 1208 and 1212.50 levels. Meanwhile, support stands at 1200 levels below which doors could open for 1197 levels.

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