Gold under pressure ahead of the US session

FXStreet (Mumbai) - Gold prices erased part of their gains to trade at USD 1224.60/OZ levels ahead of the US session as a strong USD continues to weigh on the metal prices.

USD index turns positive

The USD index has recovered from the low of 93.98 to trade 0.11% higher 94.39 levels. The strength in the USD pushed the gold prices marginally lower from USD 1228/OZ level to USD 1224/Oz levels. Moreover, prices are hovering just above the hourly 50-SMA located at 1224.11 levels, while the 5-SMA and 10-SMA have given a bearish crossover.

The metal may take cues from the US equities post the opening bell. At the moment, the major index futures in the US are pointing to a positive opening.

Gold Technical Levels

The immediate resistance is seen at 1228.18 (5-DMA), above which gains could be extended to 1234.53 (50-DMA). On the flip side, a break below the daily low of 1222.8 could push the pair down to the 100-DMA located at 1214.54 levels.

GBP/USD a tad weaker at 1.5380

The sterling is eroding recent gains and dragging GBP/USD back below the 1.5400 handle...
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