7 Mar 2016
Gold extends recovery as European stocks drop
Gold prices edged higher in Europe as European stock markets extended losses to trade lower by 1%.
US dollar caps gains
The metal rose from $1265-1267 levels seen in early Europe to trade around $1273 levels. The bid tone around safe haven metal strengthened after major stock markets across Europe extended the early weakness to trade at least 1% lower on the day.
The buying interest in the European equities dropped on reports the ECB is unlikely to do anything more than a 10 basis point rate cut, which is already priced-in by the markets.
Nevertheless, gains are slow to come on account of 0.40% rise in the USD index.
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).
US dollar caps gains
The metal rose from $1265-1267 levels seen in early Europe to trade around $1273 levels. The bid tone around safe haven metal strengthened after major stock markets across Europe extended the early weakness to trade at least 1% lower on the day.
The buying interest in the European equities dropped on reports the ECB is unlikely to do anything more than a 10 basis point rate cut, which is already priced-in by the markets.
Nevertheless, gains are slow to come on account of 0.40% rise in the USD index.
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).