9 Jul 2015
Gold strengthens on weak US data and IMF forecasts
FXStreet (Mumbai) - Gold prices strengthened in the early US session after the data in the US showed weekly jobless claims spiked last week and the IMF revised US 2015 GDP forecasts lower.
Gold trades above 5-DMA
The metal clocked a high of USD 1166.80/Oz, before falling back to its 5-DMA located at USD 1165/Oz. The safe haven metal rose from USD 1162/Oz after the weekly initial jobless claims in the US rose to 297K last week, bettering the estimate of 275K .
The metal also remains supported due to the downward revision of the 2015 GDP forecast lower to 3.3% by the IMF. The organization also revised US 2015 GDP forecast lower to 2.5% from 3.1%. Still, the gains have been capped as the USD index stays resilient around 65.55; up 0.18% for the day.
Gold Technical Levels
The metal faces immediate resistance located at 1166.98 (hourly 200-MA), above which the metal could target 1174.75 (pivot resistance). On the other hand, a break below 1162.00 could see the metal target 1156.70 (hourly 50-MA).
Gold trades above 5-DMA
The metal clocked a high of USD 1166.80/Oz, before falling back to its 5-DMA located at USD 1165/Oz. The safe haven metal rose from USD 1162/Oz after the weekly initial jobless claims in the US rose to 297K last week, bettering the estimate of 275K .
The metal also remains supported due to the downward revision of the 2015 GDP forecast lower to 3.3% by the IMF. The organization also revised US 2015 GDP forecast lower to 2.5% from 3.1%. Still, the gains have been capped as the USD index stays resilient around 65.55; up 0.18% for the day.
Gold Technical Levels
The metal faces immediate resistance located at 1166.98 (hourly 200-MA), above which the metal could target 1174.75 (pivot resistance). On the other hand, a break below 1162.00 could see the metal target 1156.70 (hourly 50-MA).