Gold rose higher, extending above 1,200 on the note of short covering and bargain hunting in late trading session. Recouping its loss from previous session, Gold peaked the day at 1,204, with yet another range bound session. Technical observation continues to witness price action bouncing off the 80 days EMA, pressurizing the precious metal beneath the 38.20% Fibonacci Retracement level. Seesawing near 1,200, it is expected of the yellow metal to trade sideways in the near term.
Gold edged lower in early Asia trade (trading as low as 1,194) in line with the firm U.S. dollar. Price did raced back above 1,200 level, on the note of short covering and bargain hunting, coupled with a bit of safe-haven demand (evident on mounting concerns over the Greece-EU debt negotiations). The precious metal continues to form a wedge between 1,192-1,204, with a break either side needed for the next directional leg. As the trading range gets narrow each day, Gold bears looks to have the firm overall near-term technical advantage. That said, the near term support is at 1,192
Gold continues to be stucked in a narrow range between the 1,195 and 1,208 with technical patterns pointing to more pressure for the yellow metal. Despite its overnight gain, the ranging pattern formed on the H1 chart continues to look worrisome, as further clarity on the outlook for U.S. rates appears to be unclear. Corresponding to that, Gold is likely to struggle for direction with low turnover and modest price action expected in the coming days.