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16 Mar 2015
Gold off day’s high
FXStreet (Mumbai) - Gold prices retreated slightly from the daily high of USD 1164.1/Oz levels, after the major European equity markets made a positive start for the day.
Weak USD supports Gold
The yellow metal remains supported by the weakness in the greenback. The US dollar was offered in the Asian session, taking the USD index down by 0.40% at 100.32. However, it remains to be seen how long the USD remains weak, especially since the markets expect the FOMC this week to drop “patient” word from its forward guidance. Thus, markets could buy USD ahead of the event, which would keep a lid on gains in Gold. Meanwhile, signs of weakness in the major equity markets could also strengthen Gold.
Gold Technical Levels
The immediate support 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.
Weak USD supports Gold
The yellow metal remains supported by the weakness in the greenback. The US dollar was offered in the Asian session, taking the USD index down by 0.40% at 100.32. However, it remains to be seen how long the USD remains weak, especially since the markets expect the FOMC this week to drop “patient” word from its forward guidance. Thus, markets could buy USD ahead of the event, which would keep a lid on gains in Gold. Meanwhile, signs of weakness in the major equity markets could also strengthen Gold.
Gold Technical Levels
The immediate support 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.