Gold poised for best monthly rise in a year

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Gold is seen consolidating in a $3 slim range in Asia, having halted its retreat from twelve-week highs near $ 1111 as markets now await the US GDP numbers for fresh incentives.

    Gold trades below 200-DMA

    Currently, gold trades almost unchanged at 1115.50, retreating from fresh session highs printed at 1116.70 last hours. The yellow metal trades largely subdued as the rebound seen in the Chinese equities caps the demand for the alternative investment in the safe-haven gold. The Shanghai Composite index rallies +1.72%, while the Shenzhen’s CSI300 gains +1.70%.

    Moreover, gold failed to benefit from greenback’s misery on Thursday after the US durable goods and pending home sales data disappointed markets. Further, the ongoing recovery mode seen in the oil prices continues to lift the market sentiment and thus, reduces gold’s safe-haven appeal. However, the bullion is headed for the best monthly rise in year.

    Later today, all eyes will remain on the US GDP data for further cues on the dollar priced-in gold.

    Gold Technical Levels

    The metal has an immediate resistance at 1119.03 (200-DMA) and 1128 (Jan 27 High). Meanwhile, the support stands at 1113.89 (1h 100-SMA) below which doors could open for 1109.80 (Jan 28 Low)
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