Gold side-lined below $ 1100 amid mixed USD

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The yellow metal is seen wavering between gains and losses in the European session, now fading a spike to highs and remains capped below 1100 barrier.

    Gold forms a small doji on daily sticks

    Currently, gold trades almost unchanged at 1096.10, having posted day’s high at 1098.80 and day’s low at 1092.80. Gold prices trade directionless and awaits fresh incentives amid a data-quiet trading session today.

    Moreover, the bullion quickly reversed from daily highs as risk-on trade returns to markets on the back of upbeat momentum seen in the European indices, while the oil sees a tepid-recovery. Gold is favoured in times of uncertainty as investors flock to safety in a bid to protect their capital.

    Furthermore, gold run into fresh offers on every attempt to 1100 levels as markets resort to profit-taking on their gold longs after the recent run-up to nine-week tops.

    Gold Technical Levels

    The metal has an immediate resistance at 1100/ 1100.72 (psychological levels/ 5-DMA) and 1107.17 (100-DMA). Meanwhile, the support stands at 1090.50 (daily S1) below which doors could open for 1087.16/1083.46 (10-DMA/ 1h 200-SMA).
    For more information, read our latest forex news.

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