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Gold runs into 100-DMA resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The rally in gold prices ran into technical resistance of the 100-DMA at USD 1105/Oz levels in early Europe, although weakness in the USD index is keeping the bid around the metal intact.

    Focus on Crude oil

    The sentiment in the market remains at the mercy of the oil prices, which have dropped into losses in Europe. Consequently, the demand for the safe havens is also indirectly dependent on the oil prices.

    As of now, both oil benchmarks are down 0.30%. Hence, the major European equity futures are pointing to a moderately weak opening. Meanwhile, the USD index is down 0.10%. Thus, yellow metal is trading around its 50-DMA.

    Gold Technical Levels

    The metal trades at 1104/Oz levels. The immediate resistance is seen at 1105 (50-DMA), above which the gains could be extended to 1109.70 (Jan 20 high). A break above would see prices rise to 1113.15 (Jan 8 high). On the other hand, a break below 1100 could see the prices drop to 1092.45 (Jan 21 low), under which the losing streak could be extended to 1082.51 (Jan 19 low).
    For more information, read our latest forex news.
     

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