30 Jan 2015
Gold struggles to extend gains
FXStreet (Mumbai) - Gold prices struggled to extend gains despite of a weaker-than-expected preliminary US Q4 GDP data released now.
Resilient USD
The yellow metal has not been able to extend gains despite weak US GDP as the US dollar failed to weaken. In fact the USD Index is back above 95.00 levels. Most of the major currencies continue to stay weak against the USD except the Japanese Yen.
Hence, the yellow metal could not extend gains as the strong USD continued to weigh on prices. The metal did clock a high of USD 1266.66, although the gains could not be sustained.
Gold Technical Levels
The metal currently trades largely unchanged post the data at USD 1263.10/Oz; up 0.575 for the day. The immediate resistance is seen at 1265.8, above which gains could be extended to 1272.08 (hourly 50-SMA). On the flip side, the support is seen at 1261.6 and 1256 levels.
Resilient USD
The yellow metal has not been able to extend gains despite weak US GDP as the US dollar failed to weaken. In fact the USD Index is back above 95.00 levels. Most of the major currencies continue to stay weak against the USD except the Japanese Yen.
Hence, the yellow metal could not extend gains as the strong USD continued to weigh on prices. The metal did clock a high of USD 1266.66, although the gains could not be sustained.
Gold Technical Levels
The metal currently trades largely unchanged post the data at USD 1263.10/Oz; up 0.575 for the day. The immediate resistance is seen at 1265.8, above which gains could be extended to 1272.08 (hourly 50-SMA). On the flip side, the support is seen at 1261.6 and 1256 levels.