Gold stays below 76.4% Fibo level

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold failed to take out USD 1245.81 (76.4% of 2015 high-low) amid uptick in the European stocks, but the downside remains capped around USD 1230 levels.

    Rise in treasury yields caps gains

    The uptick in the treasury yields is also keeping the metal under pressure today. The 10-yr treasury yield fell to 1.53% yesterday, pushing the metal higher to 1263.37. However, the yields recovered after Yellen maintained that Fed is more likely to raise rates at a gradual pace this year.

    Consequently, the yellow metal trimmed gains and extended correction to near USD 1230 levels on account of a 1% rally in the European stocks. Ahead in the day, the US retail sales number and the action on the Wall Street could influence the metal.

    Gold Technical Levels

    The spot currently trades around USD 1235/Oz. The immediate resistance is seen at 1245.81 (76.4% of 2015 high-low), above which the spot could target previous session’s high of 1263.37. On the other hand, a break below 1224.23 (Apr 6 low) would expose 1200 levels.
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