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22 Apr 2016
Gold hovers near hourly 200-SMA – key support
Gold is seen extending the massive drop witnessed in the last NY session, with the bears having tested the key hourly 200-SMA support last hour.
Gold fails once again ahead of $ 1270
Currently, gold drops -0.23% to 1246.22, quickly reversing a dip to fresh session lows of 1243.77 some minutes ago. The bullion remains heavily offered in Asia, extending the sharp decline witnessed yesterday, as the recent upbeat US economic releases refuelled Fed rate hike prospects as early as this June, weighing heavily on the non-interest paying gold.
Moreover, a minor recovery in the Asian indices after a negative start, dampened gold’s safe-haven appeal and added to the persisting bearish momentum. Further, markets also resorted to profit-taking after the precious metal failed to surpass $ 1270 (key barrier) on yet another occasion.
Meanwhile, amid a lack of fresh fundamental drivers from the US docket in the day ahead, the bullion will track the broader market sentiment for fresh incentives.
Gold Technical Levels
The metal has an immediate resistance at 1262.77 (Apr 12 High) and 1270 (round number/ Mar 17 High). Meanwhile, the support stands at 1240 (round figure) below which doors could open for 1237 (50 & 20-DMA).
Gold fails once again ahead of $ 1270
Currently, gold drops -0.23% to 1246.22, quickly reversing a dip to fresh session lows of 1243.77 some minutes ago. The bullion remains heavily offered in Asia, extending the sharp decline witnessed yesterday, as the recent upbeat US economic releases refuelled Fed rate hike prospects as early as this June, weighing heavily on the non-interest paying gold.
Moreover, a minor recovery in the Asian indices after a negative start, dampened gold’s safe-haven appeal and added to the persisting bearish momentum. Further, markets also resorted to profit-taking after the precious metal failed to surpass $ 1270 (key barrier) on yet another occasion.
Meanwhile, amid a lack of fresh fundamental drivers from the US docket in the day ahead, the bullion will track the broader market sentiment for fresh incentives.
Gold Technical Levels
The metal has an immediate resistance at 1262.77 (Apr 12 High) and 1270 (round number/ Mar 17 High). Meanwhile, the support stands at 1240 (round figure) below which doors could open for 1237 (50 & 20-DMA).