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Gold’s short covering rally loses steam

FXStreet (Mumbai) - Gold prices extended decline today after having slipped nearly 1% on Monday. The metal has erased more than half of the gain witnessed on Friday due to short covering.

Gold is trading 0.84% lower at USD 1149.90/Oz levels, compared to the yesterday’s close of USD 1159.80. The yellow metal is being pressurized by the US Dollar Index, which gained 0.19% to trade at 88.04 levels. Meanwhile, the Asian markets are trading mixed, which fails to provide any clear trigger to the Gold prices. The metal also came under pressure after the Us treasury yields shot higher yesterday following a three-year bond auction in the US.

Gold did get a boost after the US Non-farm payrolls data came-in weaker than expected on Friday, although the metal remained below a key technical resistance at USD 1180/Oz levels.

Gold Technical Levels

Gold has an immediate support located at 1144, under which prices can fall to 1137. On the flip side, the metal may re-test 1160 levels, if the immediate resistance located at 1156.70 is breached.

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