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Gold stays near daily highs ahead of US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Gold is trading slightly below its daily high of $1236.85 levels ahead of the data release in the US, which could show an improvement in the service sector output.

    Focus on US data and equity markets

    Metal traders are eyeing US ISM non-manufacturing figure, which may affect Fed rate hike bets. Meanwhile, safe haven demand for the metal may strengthen further if the risk-off seen in Asia and Europe worsens in US.

    Moreover, the metal bounced off its 50-DMA of $1215 levels following a bout of risk aversion in Asia and extended gains further on a 1.7% drop in Euro Stoxx 600 index. A 0.10% rise in the USD index is doing little to cap gains in the metal.

    Gold Technical Levels

    The immediate support is seen at $1215 (50-DMA), under which prices could drop to $1200. A break lower would expose $1191.53 (Oct 15 high). On the higher side, a break above $1240 (Feb 18 high) would shift risk in favor of a rise to $1244.12 (Mar 30 high) and $1253.32 (Feb 24 high).
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