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Gold moderately lower as European stock futures rally

FXStreet (Mumbai) - Gold prices are trading moderately lower as the rally in the European stock futures reduced the demand for the safe haven assets.

Supported by falling Fed rate hike bets

The downside in the metal is being capped by the drop in the Fed rate hike bets. Moreover, the markets do not believe what the Fed is trying to sell regarding the inflation and timing of the rate hike. Yellen and other Fed officials tried to talk up rate hike bets, but the treasury inflation protected securities believe the other way around.

However, the European equity futures advanced today; thereby reducing the demand for the safe haven assets. Consequently, the metal is trading 0.18% higher around USD 1124/Oz levels.

Gold Technical Levels

The immediate resistance is located at 1136.75 (100-DMA), above which the metal could rise to 1165.92 (200-DMA). On the other side, support is seen at 1122.79 (50-DMA) and 1100.00 levels.

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