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Trading news
2 Feb 2016
Gold rejected at 200-DMA
FXStreet (Mumbai) - Gold ran into offers at its 200-DMA at USD 1130/Oz levels and fell back to trade around USD 1125 levels in the early European session.
Currency debasement efforts support Gold
A sharp rise in the metal from the Friday’s low of USD 1108.20 levels is largely due to increased prospects of currency wars after BOJ surprised markets with negative rates. Moreover, negative interest rates and other aggressive easing measures by major central banks results in currency debasement, which always results in gold rally.
The drop witnessed today appears a chart driven move. The immediate focus now is on the equity market sentiment in Europe. Later in the day, Fed’s George comments may also influence the metal.
Gold Technical Levels
The immediate resistance is seen at 1130 (200-DMA), above which the gains could be extended to 1136.68 (Oct 8 low). On the other hand, a break below 1122.33 (5-DMA) could open doors for a slide to 1113.75 (10-DMA).
Currency debasement efforts support Gold
A sharp rise in the metal from the Friday’s low of USD 1108.20 levels is largely due to increased prospects of currency wars after BOJ surprised markets with negative rates. Moreover, negative interest rates and other aggressive easing measures by major central banks results in currency debasement, which always results in gold rally.
The drop witnessed today appears a chart driven move. The immediate focus now is on the equity market sentiment in Europe. Later in the day, Fed’s George comments may also influence the metal.
Gold Technical Levels
The immediate resistance is seen at 1130 (200-DMA), above which the gains could be extended to 1136.68 (Oct 8 low). On the other hand, a break below 1122.33 (5-DMA) could open doors for a slide to 1113.75 (10-DMA).