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Gold flat after 4-day rally

FXStreet (Mumbai) - Gold prices are trading largely unchanged on the day in early Europe after rallying for four consecutive sessions.

Correction due?

The metal has rallied by $90 in the last ten days, leaving it overbought on the intraday technical charts. However, fundamental factors still point to continuation of an upward rally. The USD is getting smoked on account of falling rate hike bets, while the stock markets are nervous amid global growth slowdown.

Whether a technical correction happens today also depends on the US CPI data. A better-than-expected figure could trigger a correction.

Gold Technical Levels

At USD 1185/Oz, the immediate resistance is seen at 1189.83 (previous day’s high), followed by a hurdle at 1200. A break above the same could open doors for a rally to 1232.41 (May 18 high). On the other side, a break below 1181.10 (daily low) could push the prices lower to 1170.13 (Aug 24 high).

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