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Gold drops 1% in Asia on stronger USD, stocks

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Gold futures on Comex received double blow at the start of this data-heavy week, as risk-sentiment seeped back into markets and bolstered the risk currency USD at the expense of the bullion.

    Gold heading towards key support near $ 1214.50-1215

    Currently, gold drops -1.06% to 1217.80, trading within a striking distance of fresh session lows struck at 1216.50. The yellow metal ended a 3-day winning streak and fell sharply this session as a classic risk-on theme prevailed amid rallying Asian equities and rebounding commodities ‘prices, which dulled gold’s safe-haven appeal.

    Meanwhile, markets shrugged-off bullish CFTC report that showed Hedge funds and money managers hiked their bullish bet in COMEX gold futures and options to a near four-month high in the week to Feb. 16.

    Looking ahead, the US calendar holds plenty of risk events, including the durable goods and prelim GDP due later this week. While markets will also closely eye the G20 meeting in light of the recent global market turmoil.

    Gold Technical Levels

    The metal has an immediate resistance at 1222.30 (5-DMA) and 1131.13 (50-DMA). Meanwhile, the support stands at 1214.75-50 (1h 100 & 200-SMA) below which doors could open for 1208 (100-DMA).
    For more information, read our latest forex news.

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