Gold extends losses, eyes 5-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold extended losses as recovery in USD and bullish tone in the European equities zapped safe haven demand for the metal.

    Rejected at monthly 100-MA

    Prices currently trade around $1250, with eyes set on 5-DMA support at $1247.48 levels. The metal failed to topple monthly 100-MA hurdle at $1263 despite dovish Fed and the resulting drop in FOCM rate hike bets and US dollar.

    The yellow metal thus appears more vulnerable now to a bout of profit taking in the USD shorts. Heading into the weekend, dollar index remains as major determinant of gold prices. Fed speak – Dudley and Rosengren - may influence metal as well.

    Gold Technical Levels

    The immediate hurdle is noted at $1263 (monthly 100-MA), above which metal could test offers around $1270.93 (previous day’s high). On the other hand, a break below $1247.48 (5-DMA) would expose $1236.93 (Mar 10 low).
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