15 Feb 2016
Gold: Correction continues, down 2.4%
The safe haven demand for Gold dropped further in Europe, tracking the rally in the major equity indices, thereby keeping the doors open for technical correction in the metal.
Dips below 23.6% fibo levels
Prices extended losses seen in Asia to trade below USD 1211.94 (23.6% Dec low - Feb high). The metal hit a daily low of USD 1207, tracking the 3% gain in the Euro Stoxx 50 index and was trading around the same the time of writing.
A 0.40% gain in the USD index is also weighing over the yellow metal. Ahead in the day, the volumes may dry up on account of the trading holiday in the US.
Gold Technical Levels
The immediate resistance is seen at 1232.41 (May 18 high), above which the prices could target 1263.37 (latest cyclical high). On the other hand, a breakdown of 1200 could see prices extend the drop to 1191.57 (Oct 15 high).
Dips below 23.6% fibo levels
Prices extended losses seen in Asia to trade below USD 1211.94 (23.6% Dec low - Feb high). The metal hit a daily low of USD 1207, tracking the 3% gain in the Euro Stoxx 50 index and was trading around the same the time of writing.
A 0.40% gain in the USD index is also weighing over the yellow metal. Ahead in the day, the volumes may dry up on account of the trading holiday in the US.
Gold Technical Levels
The immediate resistance is seen at 1232.41 (May 18 high), above which the prices could target 1263.37 (latest cyclical high). On the other hand, a breakdown of 1200 could see prices extend the drop to 1191.57 (Oct 15 high).