5 Jan 2015
Gold trades below 50-DMA
FXStreet (Mumbai) - Gold prices fell below the 50-DMA located at USD 1191.24/Oz ahead of the US session, which may see the equity markets open on a negative note.
The metal now trades 0.35% higher for the day at USD 1190.00/Oz levels; down from a high of USD 1197/Oz hit earlier today. The metal has been on a slow declining trend due to the strength in the USD index, which has gained 0.41% to trade at 91.85 levels. However, the losses have been capped by fears of “Grexit” and an increased probability of a QE in the Eurozone after the German harmonized inflation fell to the lowest level since 2009.
Meanwhile, the US index futures are trading in the red; pointing to a weak opening. The weakness in the equities may further support the metal prices.
Gold Technical Levels
The immediate support is seen at 1186.40, under which prices may test 1180.00 levels. On the other hand, resistance is seen at 1191.24 (50-DMA) and 1200.00 levels.
The metal now trades 0.35% higher for the day at USD 1190.00/Oz levels; down from a high of USD 1197/Oz hit earlier today. The metal has been on a slow declining trend due to the strength in the USD index, which has gained 0.41% to trade at 91.85 levels. However, the losses have been capped by fears of “Grexit” and an increased probability of a QE in the Eurozone after the German harmonized inflation fell to the lowest level since 2009.
Meanwhile, the US index futures are trading in the red; pointing to a weak opening. The weakness in the equities may further support the metal prices.
Gold Technical Levels
The immediate support is seen at 1186.40, under which prices may test 1180.00 levels. On the other hand, resistance is seen at 1191.24 (50-DMA) and 1200.00 levels.