Gold keeps losses below USD 1200

FXStreet (Mumbai) - Gold prices on Comex extends losses below 1200 barrier, down nearly USD 10 from daily highs, dragged lower by a poor trade balance data from China, while a firm US dollar also weighed on prices.

Gold supported at 1197.50 levels

Currently, gold trades modestly lower by -0.51% at 1198.40 levels, having previously posted day’s high at 1209.30 and day’s low at 1197.50. Gold prices dived deeper in red as the strengthening US dollar boosted by soaring treasury yields dulled gold’s appeal as a higher yielding asset, dragging yellow metal’s prices lower.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.60% at 100.23 levels.

Moreover, bearish Chinese trade data which revealed that trade surplus shrank to the lowest levels in 13 months with exports having slumped worse than expected, dampened investors’ sentiments which too continued to weigh on gold prices.

Gold Technical Levels

The metal has an immediate resistance at 1200 and 1203 levels. Meanwhile, support stands at 1193 levels below which doors could open for 1189 levels.