Gold continues to add strength against US dollar, Fed chair Yellen testifies in focus

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.