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Gold extends recovery as European stocks drop

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices edged higher in Europe as European stock markets extended losses to trade lower by 1%.

    US dollar caps gains

    The metal rose from $1265-1267 levels seen in early Europe to trade around $1273 levels. The bid tone around safe haven metal strengthened after major stock markets across Europe extended the early weakness to trade at least 1% lower on the day.

    The buying interest in the European equities dropped on reports the ECB is unlikely to do anything more than a 10 basis point rate cut, which is already priced-in by the markets.

    Nevertheless, gains are slow to come on account of 0.40% rise in the USD index.

    Gold Technical Levels

    The immediate hurdle is seen at 1285.80 (Feb 2015 high), above which the prices could test the psychological level of $1300. On the other hand, a failure to sustain above 1263 (monthly 100-MA) would open doors for a re-test of the daily low of $1249.50 (daily low).
    For more information, read our latest forex news.

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