Gold stays below $1100/Oz in US

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices remain below the psychological level of USD 1100/Oz levels as the USD index strengthened after ECB’s Draghi jawboned the EUR/USD pair lower.

    Offered near 50-DMA

    The metal ran into offers as it neared 50-DMA level earlier today on account of risk aversion in Asia. However, the European equities turned higher in early Europe in anticipation of dovish comments from the ECB and extended gains further after Draghi hinted at more easing in December.

    Hence, the haven demand for the metal dipped and is ensuring the metal remains below USD 1100/Oz levels. The US equities are trading moderately positive as well. Hence, there is little motivation to buy the yellow metal at the moment.

    Gold Technical Levels

    The immediate resistance is seen at 1105.30 (50-DMA), above which the prices could rise to 1109.70 (previous daily high). On the other hand, a break below the immediate support at 1092.74 (hourly 100-MA) could send the metal lower to 1080.48 (23.6% of Oct high-Dec low).
    For more information, read our latest forex news.

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