Gold fades spike to $1260 amid flight to safety

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold trimmed gains from the high of $1260/Oz levels despite investors flocking to safe haven assets on Brussels terror attacks and drop in the treasury yields.

    Monthly 100-MA hurdle intact

    The monthly 100-MA level of $1263 is a tough nut to crack. Over the last one week, prices have either failed to sustain above $1263 or the bullish momentum has run out of steam near the same as seen today.

    Prices spiked in early Europe on reports of terror attacks in Europe and the treasury yields dropped on rise in safe haven demand. Yields remain weak and are showing signs of further weakness despite which gold has trimmed gains.

    Metal traders now wait to see the reaction in the US markets following a terror-led risk-off in Europe.

    Gold Technical Levels

    The immediate hurdle is noted at $1257 (trend line resistance), above which prices could target $1270.93 (Mar 17 high) and $1283 (Mar 11 high). On the other hand, a break below 1240 (previous day’s low) would expose support at 1225.61 (Mar 15 low) and $1200 (psychological figure).
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