On Tuesday gold prices weakened in the Asian session, while safe havens like the US Treasuries and the Japanese yen were higher. Market players await further cues on the timing of the Fed rate hike.
At USD
1194.9/Oz, the metal is trading just above the 50-DMA located at USD
1192.79. Prices clocked a high of USD 1201.4 before beginning the
retreat, says FXStreet. In the meantime, the metal is an under performer, when compared to
other traditional safe haven assets like the US Treasuries, which have
advanced slightly, thereby pushing the yields lower.
The immediate support is seen at 1192.79 (50-DMA), under which losses could be extended to 1185.00. On the flip side, resistance is seen at 1200.74 (5-DMA) and 1204.88 (10-DMA).
Market participants expect the US
data for further insights into the Federal Reserve's likely timing for a
widely expected interest rate hike this year.
Elsewhere, oil prices rose after the U.S. Energy Information Administration said it expected U.S. shale oil output to record its first monthly decline in over four years.
U.S. crude was quoted 46 cents firmer at $52.38, while Brent May crude added 48 cents to $58.39, says Reuters.
Against a basket of major currencies, the dollar dipped 0.1 percent to 99.392 but was still not far from recent peaks. The euro edged up to $1.0570, having fallen as low as $1.0519 on Monday. The Japanese currency has advanced 0.28% against the US dollar.
