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Gold strengthens in Europe, tests offers around 200-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold found safe haven bids and ticked higher in Europe, but is struggling to take out offers around 200-DMA at USD 1129.41 levels.

    Risk-off supports Gold

    Prices were struggling in Asia and early Europe, before the risk-off mood in Europe came to gold’s rescue. The European stocks have turned lower for the third straight day as investors worry about the future course of central bank actions if the negative rates strategy fails to prop up economic growth.

    Moreover, the metal not only benefits from the safe haven demand, but also from the negative rates environment since investors prefer “zero yield” over “negative yields”.

    Gold Technical Levels

    The pair hovers around USD 1130/Oz levels. The immediate resistance is seen at 1131.09 (previous day’s high), which if taken out shall open doors for a rally to 1136 (61.8% of Oct high-Dec low). On the other hand, a break below 1128.12 (Jan 27 high) could shift risk in favor of a drop to 5-DMA at 1123.44.
    For more information, read our latest forex news.

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