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Gold prices supported by weak equities

FXStreet (Mumbai) - Gold prices remain well supported today due to the weakness in the equity markets across the globe. The US markets dipped yesterday, despite of the absence of fresh fundamental triggers.

Gold is trading 0.33% higher at USD 1234.10/Oz, although prices are almost unchanged compared to yesterday’s quote in early European session. The DJIA ended 1.35% lower yesterday while the Asian markets are trading mixed. The Asx has gained 1.01%, while the Hang Seng is down by 0.18%. The Chinese markets are trading 0.40% lower, while the Indian equities have recovered the early slump to trade flat at the time of writing. Meanwhile, the Japanese index Nikkei is leading the fall with the losses of more than 2%.

The mixed action in the Asian equities and the strength in the European and US Equity futures has capped gains in the yellow metal. However, Gold has also found support from the slump in the US Treasury yields.

Gold Technical levels

Gold has an immediate resistance of 1238, while the resistance is located at 1225 levels. The metal has managed to sustain above 1225 for the past two sessions. Hence a fall below 1225 can take the prices to 1217 levels today.

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