Gold drops to one-month low on dollar rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices extended losses to $1215.36; the lowest since Feb 26th after Bullard’s comments pushed dollar higher across the board.

    Offered below 23.6% Fibo

    Fresh offers came-in after prices fell below $1227 (23.6% of Dec low-Mar high). Fed’s Bullard, in line with his colleagues who came out on a hawkish side earlier this week, said the Fed may be falling behind the curve.

    Consequently, dollar index extended gains and now trades 0.40% higher on the day above 96.00 handle. Gold now trades on a weak footing around $1217 levels; down 2.53% on the day.

    Gold Technical Levels

    Now the immediate support is seen at $1200 handle, under which the losses could be extended to $1193.49 (38.2% of Dec low-Mar high) - $1191.53 (Oct 15 high). On the other hand, a break above $1127 (23.6% of Dec low-Mar high) could see the metal have a re-look at $1240.50 (Mar 21 low).
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