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Gold trades flat

FXStreet (Mumbai) - Gold prices are trading flat in the European session despite the fresh signs of weakness in the European equities.

Gold is trading 0.10% lower at USD 1230.60/Oz, up from the day’s low of USD 1227.50/Oz hit earlier today. The metal has been unable to gain strength so far, despite the fall in the European equity markets after a positive start. The Dax is trading 0.59% lower while the Ftse has lost 0.43% today. Both markets are down more than 1% from the day’s high. The yellow metal has failed to respond even to the disappointing German IFO survey data released during the European session today.

Moreover, the prices are under pressure amid expectations that the Federal Reserve (Fed) will end its monthly bond buying program this week. However, sustained losses in the equity markets coupled with the weakness in the US Dollar index may push gold prices higher.

Gold Technical levels

Gold has an immediate resistance at 1235, above which prices can test 1238 and 1240 levels. On the other hand, failure to sustain gains above the immediate support of 1227 can send the prices down to 1223 levels today.

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