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2 Apr 2015
Gold drops below USD 1200/Oz
FXStreet (Mumbai) - Gold prices dropped below the USD 1200 level during the US session on Thursday due to a better-than-expected US data and uptick in the US equity markets.
Gold: Takes out 50-DMA support
Prices have also declined below the 50-DMA support located at USD 1199.42/Oz. The weakness is a bit delayed reaction to a fall in the weekly jobless claims number in the US. Initial jobless in the last week dipped 20K to a seasonally adjusted 268K. Economists had called for a rise to 285K from the previous week’s print of 282K. Meanwhile, sharp drop in imports pushed the Trade deficit in February lower by 16.9%.
However, the metal traded largely unchanged around USD 1203 levels for some time after the upbeat US data were released. The drop below USD 1200.00 came after the US stock markets inched higher, while the USD index extended losses on the back of a rally in the EUR/USD pair.
Gold Technical levels
The metal currently trades at USD 1198.70, down 0.40% for the day. The immediate support is seen at 1194.67 (10-DMA), under which losses could be extended to 1185 levels. On the flip side, a break above 1200, could see the metal re-test the daily high of USD 1207.40.
Gold: Takes out 50-DMA support
Prices have also declined below the 50-DMA support located at USD 1199.42/Oz. The weakness is a bit delayed reaction to a fall in the weekly jobless claims number in the US. Initial jobless in the last week dipped 20K to a seasonally adjusted 268K. Economists had called for a rise to 285K from the previous week’s print of 282K. Meanwhile, sharp drop in imports pushed the Trade deficit in February lower by 16.9%.
However, the metal traded largely unchanged around USD 1203 levels for some time after the upbeat US data were released. The drop below USD 1200.00 came after the US stock markets inched higher, while the USD index extended losses on the back of a rally in the EUR/USD pair.
Gold Technical levels
The metal currently trades at USD 1198.70, down 0.40% for the day. The immediate support is seen at 1194.67 (10-DMA), under which losses could be extended to 1185 levels. On the flip side, a break above 1200, could see the metal re-test the daily high of USD 1207.40.