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9 Apr 2015
Gold: on a slow declining trend
FXStreet (Mumbai) - Gold prices are inching lower slow and steady towards its session low of USD 1192.5, after being rejected at USD 1200 levels in the early US session.
Gold: Down 2.3% so far this week
The safe haven metal dropped to its 50-DMA at USD 1194.68 amid broad based USD strength and lackluster activity in the US stocks. Gold prices have lost almost 2.3% from the high of USD 1244.4 seen on Monday to trade at the current level of USD 1194.68.
The metal came under pressure as the US dollar made a comeback, erasing the losses suffered from the dismal March month payrolls data. The USD strength was further re-enforced after the FOMC minutes released on Wednesday brought back the June rate hike talk on the table. Consequently, the metal declined from USD 1205 levels pre-FOM minutes to hit a low of USD 1192.5.
It remains to be seen whether the yellow metal manages to take back its losses before the weekend mid thin economic calendar in Europe and US. Chinese CPI data due for release tomorrow may become the reason for some volatility in the metal.
Gold Technical Levels
The immediate support is seen at 1192.5, under which losses could be extended to 1187.00 levels. On the flip side, a break above 1200.00 could see the pair re-test 1207.40 levels.
Gold: Down 2.3% so far this week
The safe haven metal dropped to its 50-DMA at USD 1194.68 amid broad based USD strength and lackluster activity in the US stocks. Gold prices have lost almost 2.3% from the high of USD 1244.4 seen on Monday to trade at the current level of USD 1194.68.
The metal came under pressure as the US dollar made a comeback, erasing the losses suffered from the dismal March month payrolls data. The USD strength was further re-enforced after the FOMC minutes released on Wednesday brought back the June rate hike talk on the table. Consequently, the metal declined from USD 1205 levels pre-FOM minutes to hit a low of USD 1192.5.
It remains to be seen whether the yellow metal manages to take back its losses before the weekend mid thin economic calendar in Europe and US. Chinese CPI data due for release tomorrow may become the reason for some volatility in the metal.
Gold Technical Levels
The immediate support is seen at 1192.5, under which losses could be extended to 1187.00 levels. On the flip side, a break above 1200.00 could see the pair re-test 1207.40 levels.