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Gold remains well supported above major support levels at $1185 levels.
- It made intraday high at $1194 and low at $1188 levels.
- The main event for the day is Fed chair Yellen testifies. She will head to Capitol Hill on Wednesday and Thursday to face scrutiny from lawmakers.|
- In addition, increasing concern over global equity markets helped to underpin demand for gold.
- On the top side, resistance levels are seen at $1200, $1205 and $1218 thereafter.
- Alternatively, reversal from $1200 levels may drag the parity towards $1175 levels.
- On the down side support levels are seen at $1188, $1182 and $1175 levels.
We maintain our bullish bias on XAU/USD. We prefer to take long position on XAU/USD around $1190, stop loss $1175 and target $1205 levels.
