Gold trades flat in Europe, USD caps gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices recovered from Asian session low of $1256.50, but struggle to turn positive on the day due to rise in the US dollar.

    Trades above monthly 100-MA

    Prices trade above monthly 100-MA located at $1263 levels. The recovery from the Asian session low could be attributed to doubts on whether China would be able to achieve the GDP target it set over the weekend. The world’s second largest economy is targeting GDP range of 6.5% - 7% in 2016.

    However, the metal is having a hard time turning positive on the day mainly on account of a 0.40% rise in the USD index. The metal currently trades around $1267/Oz levels.

    Gold Technical Levels

    The immediate hurdle is seen at 1285.80 (Feb 2015 high), above which the prices could test the 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).
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