Gold off highs, remains range-bound

Gold prices eased from 8 week highs during the Asian trading session broadly on account of profit taking on recent gains and flurry of policy actions taken by U.S president Donald Trump.

Gold had hit fresh 8 week high yesterday before closing lower at $1210.8. Gains were erased in the morning/Asian session were the metal fell below its short term support at $1205 to $1202, prices are now finding it difficult to cross and sustain $1205 which may be acting as a shorting point for day-traders.

Gold though still in a positive bias, is facing range bound sessions where it is unable to breach $1220 on the higher side which is an important point for the continuation of the uptrend, and on the lower side it is seeing buying around $1195-$1198 levels.

Technically gold has support around $1195. Parallel trend lines on daily chart confirms the support which if taken out could open further downside to $1182-$1184 levels.

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