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Gold slips further in Europe as European equity futures rise

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Gold prices fell to a fresh daily low of USD 1212/Oz as safe haven demand for the metal took a further dip on account of a positive action in the European equity futures.

    Hovers around key Fib

    The pair is trading around 1212, which is the 23.6% fib retracement of Dec low-Feb high. Metal took a hit in Asia on the back of strong USD and positive action in the major Asian equities. The offered tone gathered pace in Europe due to a 1% gain in the Euro Stoxx 50 futures.

    Ahead in the day, oil price moves and the resulting action in the equities could guide the metal. In the US session, the manufacturing PMI numbers could influence the metal as well.

    Gold Technical Levels

    The immediate hurdle is seen at 1234.53 (daily high) ahead of the major resistance at 1240 (previous day’s high), above which prices could target 1263.37 (Feb 11 high). On the other hand, a breakdown of immediate support 1212 (23.6% of Dec low-Feb high) would expose 1200 under which prices could trickle down to 1190 levels.
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