Gold heading towards fresh 6-week lows

FXStreet (Mumbai) - Gold prices on Comex traded almost flat in the early Asian morning, gradually inching towards fresh six week lows at 1203.40 in the previous session as Fed hike worries and lower physical demand ahead of Chinese New Year weighed on the yellow metal prices.

Gold prices stuck near lows

Currently, gold trades flat by -0.09% at 1207.50 levels, having previously posted fresh session highs at 1209.20 levels some time ago. Gold prices lost momentum and fell to fresh six week lows in the previous session as markets expect some hawkish cues from the upcoming FOMC minutes later today. Moreover, traders moved past concerns surrounding Greece uncertainties which also reduced the safe-haven demand for gold.

Additionally, physical buying was likely to moderate even more as China, one of the major sources of demand for the commodity, heads into a week-long Lunar New Year holiday starting Wednesday. Also, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell to 768.26 tonnes on Friday, indicated diminishing investor confidence in the yellow metal.

Gold Technical Levels

The metal has an immediate resistance at 1212 and 1217 levels. Meanwhile, support stands at 1203 levels below which doors could open for 1191 levels.