13 Jan 2015
Gold inches closer to 200-DMA
FXStreet (Mumbai) - Gold prices continue to extend gains in the European session, and currently hover a touching distance from the 200-DMA located at USD 1244.92/Oz levels.
The yellow metal now trades 0.82% higher for the day, supported by falling Crude prices, risk aversion in the equity markets and uncertainty ahead of the Greece national elections on Jan. 25. The metal extended gains as the major equity markets in Europe trade under pressure. The German Dax is down 0.185 while the London’s Ftse is marginally up at 0.17%. Moreover, falling Crude prices are weighing over energy stocks across the globe.
Meanwhile, the metal also received support from the decline in the US 10-yr Treasury yield to Oct 2014 low of 1.864%. The metal may extend gains well above the 200-DMA if the risk aversion continues to dominate market sentiment for the rest of the day.
Gold Technical Levels
The immediate resistance is seen at 1244.92 (200-DMA), above which gains could be extended to 1255.1 (Oct. 21st high). Meanwhile, support is seen at 1238.3 (Dec. 9 high) and 1221 levels.
The yellow metal now trades 0.82% higher for the day, supported by falling Crude prices, risk aversion in the equity markets and uncertainty ahead of the Greece national elections on Jan. 25. The metal extended gains as the major equity markets in Europe trade under pressure. The German Dax is down 0.185 while the London’s Ftse is marginally up at 0.17%. Moreover, falling Crude prices are weighing over energy stocks across the globe.
Meanwhile, the metal also received support from the decline in the US 10-yr Treasury yield to Oct 2014 low of 1.864%. The metal may extend gains well above the 200-DMA if the risk aversion continues to dominate market sentiment for the rest of the day.
Gold Technical Levels
The immediate resistance is seen at 1244.92 (200-DMA), above which gains could be extended to 1255.1 (Oct. 21st high). Meanwhile, support is seen at 1238.3 (Dec. 9 high) and 1221 levels.