26 May 2015
Gold drops to USD 1195/Oz
FXStreet (Mumbai) - Gold prices extended losses to hit a session low of USD 1195/Oz as the bid tone on the US dollar strengthened further in the early European session.
Gold back below USD 1200, for how long?
The slide from USD 1205 to USD 1195 witnessed today was almost entirely driven by the broad based USD strength. The sharp rise in the US April core CPI reported on Friday remained as the main reason for the USD strength.
However, the strength in the USD and the resulting weakness in gold is at the mercy of the critical US durable goods orders report (exp -0.4%, prev 4.0%), followed by the first quarter GDP estimate on Friday. In the meantime, the Greece issue may also result in the rise in the safe haven metal.
Gold Technical Levels
The immediate resistance is located at 1200 (50-DMA), above which gains could be extended to 1207.32 (200-DMA). On the flip side, a break below 1195.00 could drive the metal lower to 1188.00.
Gold back below USD 1200, for how long?
The slide from USD 1205 to USD 1195 witnessed today was almost entirely driven by the broad based USD strength. The sharp rise in the US April core CPI reported on Friday remained as the main reason for the USD strength.
However, the strength in the USD and the resulting weakness in gold is at the mercy of the critical US durable goods orders report (exp -0.4%, prev 4.0%), followed by the first quarter GDP estimate on Friday. In the meantime, the Greece issue may also result in the rise in the safe haven metal.
Gold Technical Levels
The immediate resistance is located at 1200 (50-DMA), above which gains could be extended to 1207.32 (200-DMA). On the flip side, a break below 1195.00 could drive the metal lower to 1188.00.