3 Feb 2015
Gold declines on hopes of Greek debt deal
FXStreet (Mumbai) - Gold prices declined on signs that Greece was softening its tone with regards to debt negotiations.
Falls below 5-DMA and 10-DMA
The metal prices are trading below the 5-DMA and the 10-DMA located at 1274.36 and 1282.05 levels, after having failed to sustain gains above the same. The prices declined after a source told Reuters that Greek Finance Minister Yanis Varoufakis said the new left-wing government would spare privately held bonds from losses. The softening of the stance adopted by newly elected Greek government calmed market nerves to some extent.
Meanwhile, prices had earlier found support on reports that the European Central Bank is considering an exit from ‘troika’ that governs Greece’s international bailout. Gold prices may extend losses if the US equities see risk-on buying.
Gold Technical Levels
The metal currently trades 0.55% lower at USD 1269.90/Oz levels. The immediate support is seen at 1269.38 (5-WMA), under which the pair has another strong support at 1266.30 (50-WMA). Meanwhile, resistance is seen at 1274.36 (5-DMA) and 1282.05 (10-DMA) levels.
Falls below 5-DMA and 10-DMA
The metal prices are trading below the 5-DMA and the 10-DMA located at 1274.36 and 1282.05 levels, after having failed to sustain gains above the same. The prices declined after a source told Reuters that Greek Finance Minister Yanis Varoufakis said the new left-wing government would spare privately held bonds from losses. The softening of the stance adopted by newly elected Greek government calmed market nerves to some extent.
Meanwhile, prices had earlier found support on reports that the European Central Bank is considering an exit from ‘troika’ that governs Greece’s international bailout. Gold prices may extend losses if the US equities see risk-on buying.
Gold Technical Levels
The metal currently trades 0.55% lower at USD 1269.90/Oz levels. The immediate support is seen at 1269.38 (5-WMA), under which the pair has another strong support at 1266.30 (50-WMA). Meanwhile, resistance is seen at 1274.36 (5-DMA) and 1282.05 (10-DMA) levels.