A strong Dollar buying interest was one of the key factors adding some fresh selling pressure on the precious metal, sending prices to the $1205 support level. With the US inflation data pending to be released today, we may see further extension of the losses for Gold.
Technically, Gold is now in a oversold state while prices are finding support from the $1205 support level. A bounce off this level to the upside is more likely to happen before we can witness any extension to the downside. Our next level to focus on is the $1200 area.
Support: 1205.73 1197.75
Resistance: 1214.15 1217