FXStreet (Mumbai) - The bullish momentum in Gold ran out of steam as it neared USD 1118.85 (50% fib of Oct high-Dec low), following which it fell back to trade around USD 1112/Oz levels. Safe haven demand falls, as oil recovers Oil prices strengthened and the European stock markets erased sharp losses. Consequently, the safe haven demand for Gold dropped. However, the move in oil is more of a technical correction since the concerns of excess supply remain intact. Hence, it remains to be seen if oil extends gains or turns lower again, thereby pushing gold back to its daily highs. Apart from oil, the US data – services and composite PMI and expectations surrounding tomorrow’s Fed decision could influence the metal. Gold Technical Levels The metal currently trades around USD 1112/Oz. The immediate resistance is seen at 1118.85 (50% of Oct high-Dec low), above which the prices could test 1126.78 (Aug 13 high). On the other hand, a break below 1104.91 (50-DMA) could send prices lower to 1092.45 (Jan 21 low). For more information, read our latest forex news.