Gold: Profit taking underway, down 0.90%

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold is witnessing a bout of profit taking as prices were overbought following a sharp rally that saw prices rise more than $100 in last one month to USD 1200/Oz mark.

    Rejected at weekly 100-MA

    The bullish momentum failed to push prices above weekly 50-MA located at USD 1200 levels in the NY session yesterday. That opened doors for a bout of profit taking. Prices now trade around USD 1188/Oz levels.

    The fundamentals - negative rates, falling Fed rate hike bets - stay in support of bulls. A possible correction in the equities could become a reason for further correction in gold.

    Gold Technical Levels

    The immediate resistance is seen at 1200, above which prices could target 1205.80 (June 18 high). On the other hand, a break below 1183.00 (Oct 28 high) would expose 1174.50 (previous day’s high).
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