Gold is witnessing a bout of profit taking as prices were overbought following a sharp rally that saw prices rise more than $100 in last one month to USD 1200/Oz mark. Rejected at weekly 100-MA The bullish momentum failed to push prices above weekly 50-MA located at USD 1200 levels in the NY session yesterday. That opened doors for a bout of profit taking. Prices now trade around USD 1188/Oz levels. The fundamentals - negative rates, falling Fed rate hike bets - stay in support of bulls. A possible correction in the equities could become a reason for further correction in gold. Gold Technical Levels The immediate resistance is seen at 1200, above which prices could target 1205.80 (June 18 high). On the other hand, a break below 1183.00 (Oct 28 high) would expose 1174.50 (previous day’s high). For more information, read our latest forex news.