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Gold declines as the USD index gains

FXStreet (Mumbai) - Gold fell into losses due to the strength in the USD index and the rise in the major European equity markets.

Gold declines 0.18%

The yellow metal fell 0.18% to trade at USD 1158/Oz, tracking the 0.67% gain in the USD index; currently trading at 99.28 levels. Meanwhile, the gains in the major European equity markets also hurt the metal. The Germany’s Dax is up 1.72%, while the London’s Ftse is up 0.39%. Strength in the equities tends to reduce the safe haven demand for Gold.

The metal could extend losses later in the day, if the US equities rally, taking cues from the European markets.

Gold Technical Levels

The immediate support is seen at 1155.00, under the metal could fall back to 1142.8 (Nov. 30 low) levels. On the other hand, resistance is seen at 1162.00 and 1166.04 (5-DMA) levels.

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