Gold drops to 50-DMA as equities extend rally, dollar strengthens

Gold prices fell to 50-DMA of $1232.63 as Asian equities extended the risk-on rally seen on Wednesday and the US dollar strengthened to 95.00 handle.

Drops for third consecutive day

The metal is trading weak for the third consecutive day as risk-on rally in the equities is restricting safe haven demand for the metal. In overnight trading, Dow index also strengthened 1%. Prices thus fell to a session low of $1229 levels before recovering to 50-DMA level of $1232.63 levels.

Ahead in the day, the metal remains at the mercy of action in the dollar index and European stock markets.

Gold Technical Levels

The immediate resistance is seen at $1244.12 (Mar 30 high), above which prices could target $1262.77 (Apr 12 high). On the other hand, a break below $1232.694 (50-DMA) would expose $1207.69 (Mar 28 low).