Back
3 Mar 2015
Gold trades flat
FXStreet (Mumbai) - Gold prices are trading in the sideways manner in the European session after having recovered losses tracking the weakness in the USD index.
Gold: Recovers above 10-DMA
Prices recovered to trade just above the 10-DMA located at USD 1206.71/barrel. The metal has been able to sustain above the 61.8% retracement (1307.3-1131.9) located at USD 1199 on closing basis. Prices did hit an intraday low of USD 1190 levels, although managing to finish above USD 1199 levels.
Prices are unable to extend gains as investors eyed easy monetary policy in China and continued import restriction in India. China also cut its benchmark interest rate for the second time in less than four months, while India's finance minister Arun Jaitley retained the duty for imports of gold at 10%.
The metal may extend gains if the sentiment in the equity markets worsens. Given the absence of major data out of the US or Europe, the yellow metal is likely to take cues from the Treasury yields and the equity markets.
Gold Technical Levels
The immediate resistance is seen at 1216.11 (100-DMA), above which gains could be extended to 1219.6. On the flip side, support is seen at 1199 and 1190 levels.
Gold: Recovers above 10-DMA
Prices recovered to trade just above the 10-DMA located at USD 1206.71/barrel. The metal has been able to sustain above the 61.8% retracement (1307.3-1131.9) located at USD 1199 on closing basis. Prices did hit an intraday low of USD 1190 levels, although managing to finish above USD 1199 levels.
Prices are unable to extend gains as investors eyed easy monetary policy in China and continued import restriction in India. China also cut its benchmark interest rate for the second time in less than four months, while India's finance minister Arun Jaitley retained the duty for imports of gold at 10%.
The metal may extend gains if the sentiment in the equity markets worsens. Given the absence of major data out of the US or Europe, the yellow metal is likely to take cues from the Treasury yields and the equity markets.
Gold Technical Levels
The immediate resistance is seen at 1216.11 (100-DMA), above which gains could be extended to 1219.6. On the flip side, support is seen at 1199 and 1190 levels.