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Gold stuck between strong USD and weak equities

FXStreet (Mumbai) - Gold prices trade flat as the metal remains supported by have demand, while upside remains restricted by a stronger US dollar.

Trades above support at USD 1132.90/Oz

Prices currently trade above the support at USD 1132.90/Oz (November 2014 low). The downside is being protected by the 1% loss seen in the pan-European Euro Stoxx equity index. Meanwhile, the US dollar trades on a positive footing in Europe as investors believe the rate hike in 2015 is still possible.

Consequently, the metal has found itself stuck largely in the range of USD 1131-1135/Oz levels. The metals traders would keep an eye on the USD index and US stocks ahead of Fed’s Lockhart speech.

Gold Technical Levels

At USD 1134.50/Oz levels, the immediate resistance is seen at 1150.00, above which the prices could rise to 1169 (Aug 24 high). On the other side, support is seen at 1113.55 (50-DMA) and 1100 levels.

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