Oil sell-off isn’t helping gold

Oil sell-off and the resulting risk-off in the markets is not helping gold, which has surrendered gains to trade around $1233/Oz levels.

Trades below 50-DMA

Metal hovers below its 50-DMA level of $1234 levels after having clocked a high of $1240 in early Asia. Doha talks failed to reach a productive conclusion, leading to a big gap down opening in oil. The resulting sell-off in commodity currencies and weakness in equities has failed to keep the metal strong.

Meanwhile, the USD index is trading flat around 94.70 levels and thus offering no cues to the metal. The focus ahead is on the equity market sentiment as data calendar in Europe and US is empty.

Gold Technical Levels

The immediate hurdle is noted at $1234.53 (50-DMA), above which prices could target $1244.10 (Mar 30 high). On the other hand, a violation of immediate support at $1230 (daily low) would expose $1207.47 (Mar 28 low).