Gold looks to stabilize ahead of Yellen

Gold prices on Comex stalled its overnight recovery mode and now trades side-ways below 10-DMA located near $ 1229 region.

Gold eyes Yellen’s testimony

Currently, gold trades modestly flat at $ 1226.55, recovering from a dip to $ 1220.  Gold bulls take a breather from yesterday’s sharp decline and now consolidate the overnight recovery amid a cautious tone prevalent in the market, after the headlines hit the wires that the US is mulling to new currency strategy to pressure China.

The yellow metal also found some support from upbeat Chinese price pressures data, which added to the recent streak of solid Chinese macro news, and hence, eased demand concerns from the world’s top gold consumer, China.

All eyes now remain on the US PPI report and Fed Chair Yellen’s testimony due on the cards later in the NA session for fresh insights on the US interest rates outlook.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1229.45 (10-DMA) and 1236 (daily R2). Meanwhile, the support stands at 1220 (previous low) below which doors could open for 1215.75 (20-DMA).