After yesterday's strong upsurge to over three-month tops, and a subsequent retracement, the precious metal now seems to have entered a consolidation phase and was seen oscillating in a narrow trading range. Intensifying geopolitical tensions led by Saudi Arabia, and Italy’s problematic budget helped the yellow metal to grow in demand as a safe haven. However, the upward move was somewhat limited by a modest pick up in the greenback demand. In the absence of any major economic releases, the commodity remains at the mercy of broader market risk sentiment and the US Dollar price action.
Gold prices are still trading in the same range and attempting to break above the $1230 level. The price is currently hovering just above the $1227 level, but a break above the $1228.3 will help retest the recent highs at $1233.15. This consolidation is preparing for that break unless the $1220 level is violated to the downside.
Support: 1224.20 1220.12
Resistance: 1228.26 1230.74