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16 Mar 2015
Gold: Erasing gains slow and steady
FXStreet (Mumbai) - Gold has almost entirely given up its gains as it has been on a slow and steady declining trend post hitting a high of USD 1164.1/Oz in the Asian session.
Gold: further weakness ahead?
The yellow metal has weakened from the daily high despite of a drop in the USD index; down 0.41% at 100.31. The gains in the European equity markets could have weighed over gold. Thus, the metal appears more vulnerable to a rebound in the USD index. Moreover, the markets are likely to bid up the USD in anticipation of Fed dropping “patient” word from its forward guidance later this week. Hence, the metal could extend the drop if the USD index makes a comeback.
Furthermore, strength in the US stocks could also add to the bearish pressure on the yellow metal.
Gold Technical Levels
The immediate resistance is located at 1164.92 (10-DMA), above which gains could be extended to 1173.4. On the flip side, a break below 1156.52 (5-DMA) could push the metal down to 1147.4.
Gold: further weakness ahead?
The yellow metal has weakened from the daily high despite of a drop in the USD index; down 0.41% at 100.31. The gains in the European equity markets could have weighed over gold. Thus, the metal appears more vulnerable to a rebound in the USD index. Moreover, the markets are likely to bid up the USD in anticipation of Fed dropping “patient” word from its forward guidance later this week. Hence, the metal could extend the drop if the USD index makes a comeback.
Furthermore, strength in the US stocks could also add to the bearish pressure on the yellow metal.
Gold Technical Levels
The immediate resistance is located at 1164.92 (10-DMA), above which gains could be extended to 1173.4. On the flip side, a break below 1156.52 (5-DMA) could push the metal down to 1147.4.