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Gold strengthens as stocks drop, China data disappoints

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Gold prices extended the advance in the European session; nearing eyeing Friday’s high of $1279.85/Oz levels as weak china data triggered risk aversion in the equity markets.

    Safe haven assets rise

    Sharp decline in China’s imports triggered concerns about consumption and triggered risk-off in Asia, which worsened in Europe. Consequently, gold and other classic safe haven assets advanced. Meanwhile, flat action in the USD index is hardly inspiring to gold bears.

    Prices currently trade at $1277/Oz; up 1.13% on the day. The demand for the metal remains at the mercy of risk sentiment in the US stocks, given the data calendar is light.

    Gold Technical Levels

    The immediate resistance is seen at 1279.85 (Friday’ high), which if toppled could see prices test supply at 1285.80 (Feb 2015 high). A break higher would expose psychological level of $1300. On the other hand, a failure to sustain above 1263 (monthly 100-MA) would open doors for a re-test of the daily low of $1249.50 (daily low), under which prices could slide to 1240 (Feb 18 high).
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