Gold backs off from session highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 31, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold backed off from fresh session high of $1240.41 clocked after initial jobless claims release in the US, but stays upbeat around $1236 levels.

    Treasury yields remain weak, support gold

    Yields on the short duration and long duration treasuries in the US remain low and thus offer support to Gold. Moreover, yields are down as dovish Yellen killed Fed rate hike bets. Metal took out hourly 200-MA hurdle in Europe and rose to $1240 levels after jobless claims in the US printed at two-month high.

    Ahead in the day, metal traders would keep an eye on comments from Federal Reserve policymaker William Dudley. Broad based USD demand and action on the Wall Street would influence the metal as well.

    Gold Technical Levels

    The immediate hurdle is noted at $1240 (falling trend line hurdle), above which prices could test $1244.12 (previous day’s high). Acceptance above the same would expose $1270.93 (Mar 17 high). On the other hand, support is noted at $1223.25 (previous day’s low) and $1215 (Mar 29 low). A break lower would expose $1200 (zero figure + falling channel support on the daily chart).
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