26 Mar 2015
Gold steadies near a key Fibo level
FXStreet (Mumbai) - Gold prices have steadied around USD 1205.4, which is the 38.2% Fib retracement of the move from USD 1307.3 – USD 1142.6.
Remains supported by Safe haven demand
Gold prices have managed to sustain above the USD 1200/Oz due to the risk aversion seen in the major equity markets across the globe and due to geopolitical tensions in the middle east. Earlier today, prices had clocked a high of USD 1219.3/Oz as the metal was also supported by a weak USD.
Strong USD weighs
The metal pared its gains to trade at USD 1205.1/Oz levels as the US dollar made a strong comeback after the data in the US showed weekly initial jobless claims fell to a six-week low last week. The USD extended gains further after the preliminary services PMI for March came-in at 58.5, beating the estimate of 57.0. The upbeat economic data helped the US dollar index recover losses to trade at 97.27; up 0.19% for the day.
The metal could drop further towards USD 1200.00 in case the US equity markets turn positive late r in the day.
Gold Technical Levels
The immediate resistance is seen at 1205.40, above which gains could be extended to the 50-DMA currently located at 1208.94. On the flip side, a break below 1200.00, could push the metal lower to 1195.3.
Remains supported by Safe haven demand
Gold prices have managed to sustain above the USD 1200/Oz due to the risk aversion seen in the major equity markets across the globe and due to geopolitical tensions in the middle east. Earlier today, prices had clocked a high of USD 1219.3/Oz as the metal was also supported by a weak USD.
Strong USD weighs
The metal pared its gains to trade at USD 1205.1/Oz levels as the US dollar made a strong comeback after the data in the US showed weekly initial jobless claims fell to a six-week low last week. The USD extended gains further after the preliminary services PMI for March came-in at 58.5, beating the estimate of 57.0. The upbeat economic data helped the US dollar index recover losses to trade at 97.27; up 0.19% for the day.
The metal could drop further towards USD 1200.00 in case the US equity markets turn positive late r in the day.
Gold Technical Levels
The immediate resistance is seen at 1205.40, above which gains could be extended to the 50-DMA currently located at 1208.94. On the flip side, a break below 1200.00, could push the metal lower to 1195.3.