Gold price rises to 200-DMA located at USD 1202.63/Oz

New York (Jun 18)  Gold prices extended gains to its 200-DMA located at USD 1202.63/Oz levels after the US data showed slower than expected rise in the price pressures in May.

Gains capped due to fall in jobless claims

The gains in the metal were restricted at the high of USD 1203.7/Oz after the labor department data showed a larger than expected drop in the US initial jobless claims in the US. Moreover, the initial jobless claims printed lower than 300K for the fifth consecutive week.

The metal was already trading around USD 1200.00 before the release of the data on account of the weakness in the USD index. Ahead in the day, the metal could take cues from the regional manufacturing indices and the sentiment on the Wall Street.

Gold Technical Levels

The immediate resistance is located at 1204.4 (June 1 high), above which gains could be extended to 1214.8 (May 22 high). On the flip side, a failure to sustain above 1200 could push the pair down to its immediate support at 1192.57 (50-DMA).

Source: FXstreet