Gold: Will it extend gains above 100-DMA this time?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices rose above 100-DMA on Tuesday, but the question is whether the metal will extend gains above the same or fall back and extend losses as witnessed since March 2015.

    Rejected at USD 1153/Oz

    The metal was offered at a high of USD 1153/Oz levels in early Europe. The uptick in the European stocks, coupled with an uptick in the USD index weighed over the metal. However, the dropping 2015 Fed rate hike bets remain supportive for the metal.

    Whether the metal extends gains above 100-DMA largely depend on the whether the Fed speak turns dovish or keeps hopes of 2015 rate hike alive. Meanwhile, sentiment in the equity markets could also play major role in deciding the trend in the metal ahead.

    Gold Technical Levels

    At USD 1148.70/Oz, the immediate resistance is seen at 1156.70 (Sept 24 high), followed by a major hurdle at 1169.99 (Aug 24 high) and 1200 levels. On the downside, a break below 100-DMA at 1143.25 would expose 1132.90 (Nov 2014 low) and 1121.50 (50-DMA).
    For more information, read our latest forex news.

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