Gold opens at 1256 in Asia, stuck in no-mans as extended long positioning caps rallies and geopolitics tensions support the downside. Overnight, gold sold off to 1247 initially only to be saved as lower U.S. yields saw the dollar weaken.
Key support still lies at the 1240 region with the 200-day moving average above lying at 1258 this morning. Rallies above 1260 could be hard to sustain, as gold lacks momentum from a technical perspective. We still believe that a break of 1240 will could signal a deeper correction.