Gold price remains flat around USD 1204/Oz

London (May 25)  Gold prices continue to trade dead flat around USD 1204/Oz levels amid lack of fresh fundamental triggers and thin volumes on account of trading holiday in Europe and US.

Gold stuck between 100-DMA and 5-DMA

The downside in the metal has been capped around 100-DMA located at USD 1203.44, while the upside has been capped by the 5-DMA located at USD 1206. The yellow metal had declined to a low of USD 1201.5 on Friday on strong US core CPI numbers and Fed Chair Yellen’s comments. Moreover, Yellen for the first time clearly said that the central bank is poised to raise rates sometimes this year.

The reaction to Yellen’s comments could be more pronounced on Tuesday as traders across Europe and US return to the markets after an extended weekend.

Gold Technical Levels

The immediate resistance is seen at 1207.26 (200-DMA), above which the metal could rise to 1213.45 (10-DMA). On the flip side, a break below 1203.44 (100-DMA) could drive the prices lower to 1199.84 (50-DMA).

Source: FXstreet