Gold: Recovery from 2-week lows stalls on higher equities

Gold surrendered $ 1200 barrier once again, although defends mild gains amid higher Asian equities backed by Trump reflation trades.

Gold eyes US dataflow

Currently, gold trades +0.05% higher at fresh session lows of $ 1198.25, reversing quickly from 1202.25 highs.  Gold met fresh offers above 1200 mark and now resumes its bearish momentum in a bid to retest two-week lows reached at $ 1192.50 a day before.

The latest leg down in the bullion can be mainly attributed to a fresh round of buying seen around the treasury yields as risk-on trades extend into Asia amid higher Asian indices, with markets optimistic on renewed hopes that US President Trump will unleash growth-friendly spending policies.

All eyes remain on a fresh batch of US macro updates due later today, including jobless claims, flash services PMI, goods trade balance and new home sales data.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1202.25 (daily high) and 1206.74 (5-DMA). Meanwhile, the support stands at 1192.50 (2-week low) below which doors could open for 1190 (zero figure).