25 Feb 2015
Gold trades above 5-DMA
FXStreet (Mumbai) - Gold prices on Comex climbed higher in the Asian session, reaching fresh two day highs largely on US dollar weakness as traders continue to digest Yellen’s comments.
Gold back above USD 1200/ Oz
Currently, gold trades higher by 0.89% at 1207.90 levels, having posted fresh session highs at 1210.10 levels some time ago. Gold prices bounced-off seven–week lows and edged higher mainly due to a retreat in US dollar as Yellen, in her testimony last night, reiterated Fed is preparing to consider rate hikes on a "meeting-by-meeting basis", an increase is not likely for at least the next couple of meetings.
Moreover, re-emergence of Asian physical demand as China reopens from a week-long Lunar New Year holiday further boosted gold prices. Also, upbeat Chinese manufacturing data signalled growth likely to be back on track and hence soothing demand concerns from the world’s second largest yellow metal consumer, China.
Gold Technical Levels
The metal has an immediate resistance at 1213.80 (100-DMA) and 1224.57 (20-DMA) levels. Meanwhile, support stands at 1200 levels below which doors could open for 1190 levels.
Gold back above USD 1200/ Oz
Currently, gold trades higher by 0.89% at 1207.90 levels, having posted fresh session highs at 1210.10 levels some time ago. Gold prices bounced-off seven–week lows and edged higher mainly due to a retreat in US dollar as Yellen, in her testimony last night, reiterated Fed is preparing to consider rate hikes on a "meeting-by-meeting basis", an increase is not likely for at least the next couple of meetings.
Moreover, re-emergence of Asian physical demand as China reopens from a week-long Lunar New Year holiday further boosted gold prices. Also, upbeat Chinese manufacturing data signalled growth likely to be back on track and hence soothing demand concerns from the world’s second largest yellow metal consumer, China.
Gold Technical Levels
The metal has an immediate resistance at 1213.80 (100-DMA) and 1224.57 (20-DMA) levels. Meanwhile, support stands at 1200 levels below which doors could open for 1190 levels.