Gold remains capped below hourly 100-SMA

Having bottomed out near 1280 region, gold attempts a gradual recovery during the European hours, only to find strong resistance capping the upside at hourly 100-SMA (1287).

Gold off two-year highs on easing Brexit fears

Currently, gold now trades +0.25% higher at 1285.15, struggling hard to rise above 1287 levels. The bull regained poise amid renewed weakness in the greenback across the board, although the upside remains capped on the back of a risk-on rally seen in the European equities.

The bullion heads towards third weekly rise and is likely to remain underpinned ahead of the EU referendum scheduled next Thursday. Meanwhile, markets now eagerly await the US macro updates for a clear direction on the precious metal this Friday.

Gold Technical Levels                                   

The metal has an immediate resistance at 1303.79 (May 2 high) and 1303.14 (200-WMA). Meanwhile, the support stands at 1280 (round number) below which doors could open for 1271.58 (10-DMA).