Gold slides to near 10-DMA support

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices dropped on the back of a risk-on in the European equities and strong US dollar. Prices neared 10-DMA located at $1247.24 levels in Europe.

    Rejected at hourly 50-MA

    Prices failed to take out hourly 50-MA stationed at $1265 levels earlier today before the risk driven sell-off began. The metal is now eyeing the hourly 200-MA located at $1248.46 levels. The European equities rallied on hopes of big ECB bazooka tomorrow. Consequently, haven demand dropped.

    Furthermore, drop in the EUR pushed the USD index higher by about 0.20%, which further weighed over metal. The metal currently trades around $1253/Oz levels.

    Gold Technical levels

    The immediate hurdle is seen at $1265 (hourly 50-MA), above which prices could target $1279.84 (Mar 4 high). On the other hand, a break below $1248.46 (hourly 200-MA) would open doors for a slide to $1219.89 (Feb 29 low).
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