Gold firms above USD 1270, awaits fresh incentives

FXStreet (Mumbai) - Gold prices on Comex extended gains from the previous session and remained elevated, although in a tight range, as traders await fresh cues from the European session.

Forms a Doji on the daily chart

Currently, gold trades higher by 0.64% at fresh daily highs of 1272.60 levels, having posted day’s lows of 1271.10 and day’s high at 1274.10. Gold prices forms a doji on the daily chart clearly indicating indecisiveness amid lack of fresh triggers ahead of Europe open.

Meanwhile, markets seems to have moved past the overnight ECB’s decision that it will no longer accept Greek bonds as collateral for its liquidity operations which fuelled concerns over the debt-struck Greece. Investors flocked to safe haven in gold post the ECB statement which pushed the prices higher. Moreover, China’s rate cut move and falling equities also underpinned the yellow metal prices.

Traders now turn their attention towards the US nonfarm payrolls data due tomorrow for further momentum on gold prices.

Gold Technical Levels

The metal has an immediate resistance at 1276 and 1285 levels. Meanwhile, support stands at 1267 levels below which doors could open for 1260 levels.