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Gold turns positive above $1218

FXStreet (Mumbai) - Gold prices on Comex recovered mild losses and turned in green on the back of fresh round of US dollar selling witnessed in the European session. While lower European stocks also supports the yellow metal.

Gold off fresh five week highs

Currently, gold trades flat at 1218.10, having posted fresh five week highs at 1219.50. Gold retraces from fresh five week highs and traded almost unchanged awaiting fresh incentives from the upcoming US PPI and weekly jobless claims data for further USD moves.

The dollar index, which measures the currency's strength against its major peers, hovers near fresh three month lows at 93.21, -0.50% on the day.

Moreover, reports by WGC that global demand for gold fell 1% in the first quarter of this year, due to lower demand in key markets also hurt the yellow metal, keeping a lid on the prices. A total of 1,079 metric tons were sold in the first three months of 2015, compared to 1,090 tons in the first quarter last year.

In the US last session, gold prices shot higher after investors got a glimpse of yet another lacklustre US economic report. Retail sales were flat in April, fresh data from the Department of Commerce showed earlier on Wednesday.

Gold Technical Levels

The metal has an immediate resistance at 1223 and 1226 levels. Meanwhile, support stands at 1215 below which doors could open for 1210 levels.

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