Gold extends gains

FXStreet (Mumbai) - Gold prices extended gains during the US session on Friday on the back of a broad based sell-off in the US dollar. However, the gains have been slow to come and somewhat restricted due to the strength in the major equity markets across the globe.

Gold: tested 5-week average

The metal rose to the 5-week moving average located at USD 1183.22/Oz levels as the US dollar weakened. However, further gains appear capped at the same level due to the rally in the US markets. The DJIA currently trades 0.83% higher at 18,108.50 levels. This has also led the European markets higher. The Germany’s DAX now trades 1.21% higher at 12,043.00 levels, while the London’s Ftse is up 0.50% at 6996.80 levels.

Gold Technical Levels

The immediate resistance is seen at 1183.22 (5-WMA), above which gains could be extended to 1190.3. On the flip side, support is seen at 1178.00 and 1168.8 levels.

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