6 May 2015
Gold hits session high
FXStreet (Mumbai) - Gold prices recovered losses to print a session high of USD 1197.4/Oz, after the ADP report showed the US private sector added fewer than expected jobs in April.
Gold: will it rise above USD 1200/Oz?
The metal ran into selling orders closer to USD 1200 levels on Tuesday and a similar action is being witnessed today as the metal fell back to USD 1194.7 from the session of USD 1197.4. Moreover, the weak data failed to weaken the long duration US Treasury yields. Consequently, the metal may have a hard time rising over and above USD 1200.00 levels, since the rise in long term rates reduces incentive to hold yellow metal.
Apart from the long term rates, the sentiment in the US equity markets could also influence the metal. At the moment, the major US index futures are pointing to a slightly positive opening on Wall Street.
Gold Technical Levels
The immediate resistance is located at 1200.00, above which gains could be extended to 1208.15 (200-DMA). On the flip side, a break below 1189.89 (50-DMA) could push prices lower to 1183.7 (Apr. 14 low).
Gold: will it rise above USD 1200/Oz?
The metal ran into selling orders closer to USD 1200 levels on Tuesday and a similar action is being witnessed today as the metal fell back to USD 1194.7 from the session of USD 1197.4. Moreover, the weak data failed to weaken the long duration US Treasury yields. Consequently, the metal may have a hard time rising over and above USD 1200.00 levels, since the rise in long term rates reduces incentive to hold yellow metal.
Apart from the long term rates, the sentiment in the US equity markets could also influence the metal. At the moment, the major US index futures are pointing to a slightly positive opening on Wall Street.
Gold Technical Levels
The immediate resistance is located at 1200.00, above which gains could be extended to 1208.15 (200-DMA). On the flip side, a break below 1189.89 (50-DMA) could push prices lower to 1183.7 (Apr. 14 low).