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Gold trades flat, lacks fresh triggers

FXStreet (Mumbai) - Gold prices have flattened out during the European session today as the yellow metal lacks fresh triggers out of the Europe. So far, the rise in the European equity markets has not pushed gold prices lower.

Gold is trading 0.23% lower at USD 1238.50/Oz, almost unchanged since the early morning trade. The major European equity indices have gained more than 1%, while the S&P futures and NASDAQ futures are up more than 1.3% each. Moreover, the resilience in Gold prices indicates that the investors are not sure whether the rally in stocks witnessed today shall last long.

Gold prices are likely to remain well supported as the Federal Reserve Chairman Janet Yellen has little reason to come out hawkish in her speech scheduled later in the day. Moreover, she is not expected to talk about monetary policy today.

Gold may move during the US session as the US Housing Starts and Building Permits data is due for release at 12:30 GMT.

Gold Technical levels

The metal may dip to 1235 levels if the support level of 1238 is breached. On the other hand, prices may rise to 1245-1250 levels if the resistance level of 1242 is taken out.

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