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Gold marginally up on weak equities

FXStreet (Mumbai) - Gold prices have recovered from an Intraday low of USD 1202.6/Oz tracking weakness in the Asian equities.

Prices have received support as the rally in the US Dollar appears to be overdone. The US Dollar Index is trading at 85.94, up 0.06% at the time of writing. Moreover, expectations of a sooner-than-expected interest rate hike in the US is capping gains in the yellow metal. However the ten-year treasury yield in the US has declined to 2.41% from the Friday's high of 2.48%. Weakness in the treasury yields despite strong US jobs data should provide support to the Gold prices.

The yellow metal may strengthen during the European session as the European equity futures are pointing to a weak opening.

Gold technical levels

Gold has a strong resistance at 1207.80 (5-day moving average and low of 25th Sept, 2014); breach of which will see Gold rising to 1215. Meanwhile, the support is located at 1201.20.

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