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Gold spikes on China rate cut news

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - Gold prices spiked after the PBOC announced a rate cut a day after the ECB’s Draghi signaled more monetary easing in December.

    Trades above 200-DMA

    Prices are back above the 200-DMA at USD 1174.59/Oz levels. Draghi’s dovish talk appears to have lit a fire to another round of monetary easing across Europe and Asia. It remains to be seen how long the Fed and the BOE wait and watch at the other end of this new race to loosen monetary policy.

    For the time being, the metal is cheering China rate cut news. The metal clocked a high of USD 1179.43/Oz and now trades around USD 1178/Oz.

    Gold Technical Levels

    The immediate resistance is seen at 1191.53 (Oct 15 high), above which the metal could run into a psychological resistance at 1200.00 levels. On the other side, support is seen at 1174.59 (200-DMA) and 1172.99 (50-DMA), followed by a major support at the daily low of 1164.51.
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