Gold drops to USD 1179.9 before recovering to USD 1186

FXStreet (Mumbai) – Gold prices dropped in a flash to USD 1179.9/Oz after the US National Association of Realtors (NAR) data showed Pending home sales in April rose to 9-year high.

Back to square one

The metal rose back to USD 1186/Oz, a level seen before the release of Pending home sales figures. Moreover, the USD index failed to sustain gains, as it dropped to 97.43 levels from the post-data high of 97.75. Consequently, the yellow metal was able to take back its losses.

Meanwhile, the weak sentiment on the Wall Street also supports Gold. The Down Jones Industrial Average (DJIA) currently trades 0.28% or 51.49 points lower at 18,111.50 levels. The metal could turn positive in case the USD index falls into losses, while the sentiment on the Wall Street takes a turn for the worst.

Gold Technical Levels

At the moment, the metal is trading at USD 1186.00/Oz. The immediate resistance is located at 1195.12 (5-DMA), above which the metal could extend gains to 1199.85 (50-DMA). On the flip side, a break below 1183.4 could push the metal down to 1178.00 levels.

Gold prices dropped in a flash to USD 1179.9/Oz after the US National Association of Realtors (NAR) data showed Pending home sales in April rose to 9-year high.

(Market News Provided by FXstreet)