25 Mar 2015
Gold strengthens as USD falls
FXStreet (Mumbai) - Gold prices rose to a session high of USD 1193.6/Oz levels, as the mood turned risk friendly sending the US dollar lower against most of the major currencies.
Gold: Could it extend gains to USD 1200/Oz?
The reversal in Gold prices seen in the early European session is mainly driven by the weakness in the USD. Moreover, the risk-on mood usually keeps the metal under pressure. Thus, it remains to be seen if the metal sustains gains. The USD weakness may not last long, especially if the German IFO data prints lower than expected. In such a case, the risk-on mood could turn sour leading to a rebound in the USD and weakness in Gold.
Gold Technical Levels
The metal currently trades at USD 1192.4/Oz. The immediate support is seen at USD 1118.02 (5-DMA), under which prices could drop to 1185.6. On the other hand, a break above 1195.3, could push gold prices higher to 1200.00 levels.
Gold: Could it extend gains to USD 1200/Oz?
The reversal in Gold prices seen in the early European session is mainly driven by the weakness in the USD. Moreover, the risk-on mood usually keeps the metal under pressure. Thus, it remains to be seen if the metal sustains gains. The USD weakness may not last long, especially if the German IFO data prints lower than expected. In such a case, the risk-on mood could turn sour leading to a rebound in the USD and weakness in Gold.
Gold Technical Levels
The metal currently trades at USD 1192.4/Oz. The immediate support is seen at USD 1118.02 (5-DMA), under which prices could drop to 1185.6. On the other hand, a break above 1195.3, could push gold prices higher to 1200.00 levels.