Gold under pressure in Asia amid improved risk sentiment

Gold prices on Comex is seen on a retreat from four-week tops reached near $ 1260 barrier, but manages to hold above $ 1250 mark amid a steady recovery witnessed in the US dollar across the board since the last US session.

Gold: Eyes on Fedspeak and Article 50 trigger

Currently, gold trades marginally lower at $ 1253.55, having found strong bids at $ 1252/1252.50 levels. Gold prices is on the back foot so far this session as the risk-sentiment appears to have improved amid a recovery in the Asian equities, while a renewed rally in the 2-year treasury yields indicates markets’ optimism on the Fed’s pace of tightening monetary policy, which collaborates to the retreat in the non-interest bearing gold.

Gold also finds sellers amid a broad based US dollar recovery, as markets take profits off the table after yesterday’s extensive sell-off, triggered by the Healthcare debacle, Attention now turns towards the US dataflow and Fedspeak due later in the NA session, as investors gear up for the historic triggering of the Article 50 due tomorrow.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1260.95 (4-week tops) and 1265 (round figure). Meanwhile, the support stands at 1251.38 (5-DMA) below which doors could open for 1244.46/36 (10 & 200-DMA).