9 Apr 2015
Gold in red near USD 1195, testing 50-DMA
FXStreet (Mumbai) - Gold prices on Comex extended losses and remained deep in red ahead of Europe open, on rallying Asian equities which further added to the overnight FOMC minutes-induced losses.
Gold back below USD 1200
Currently, gold trades lower by -0.62% at 1195.60 levels, having previously posted day’s high at 1201.80 and day’s low at 1194.90. Gold prices slipped below USD 1200 for the first time this week after traders got a glimpse inside last month's policy debate at the Federal Reserve. Gold prices continue to tumble as the latest FOMC minutes re-ignited June hate hike expectations driving treasury yields higher which in turn dulls the demand for the yellow metal as a higher yielding asset.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.26% to 98.50 levels.
Moreover, indicating lack of investors’ confidence, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell to 733.06 tonnes on Tuesday, the lowest level since January 16.
Gold Technical Levels
The metal has an immediate resistance at 1200 and 1202.14 (10-DMA) levels. Meanwhile, support stands at 1194.05 (50-DMA) levels below which doors could open for 1190 levels.
Gold back below USD 1200
Currently, gold trades lower by -0.62% at 1195.60 levels, having previously posted day’s high at 1201.80 and day’s low at 1194.90. Gold prices slipped below USD 1200 for the first time this week after traders got a glimpse inside last month's policy debate at the Federal Reserve. Gold prices continue to tumble as the latest FOMC minutes re-ignited June hate hike expectations driving treasury yields higher which in turn dulls the demand for the yellow metal as a higher yielding asset.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.26% to 98.50 levels.
Moreover, indicating lack of investors’ confidence, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell to 733.06 tonnes on Tuesday, the lowest level since January 16.
Gold Technical Levels
The metal has an immediate resistance at 1200 and 1202.14 (10-DMA) levels. Meanwhile, support stands at 1194.05 (50-DMA) levels below which doors could open for 1190 levels.