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11 May 2015
Gold turns positive
FXStreet (Mumbai) - Gold prices covered losses to trade positive at USD 1191/Oz ahead of the US session. The recovery in the metal contradicts the drop in the other safe haven assets like the Japanese Yen and US Treasuries.
Gold: Approaching 50-DMA
The metal took out its hourly 200-MA resistance at USD 1189.37/Oz and is fast approaching its 50-DMA located at USD 1192.23/Oz levels. The safe haven metal may have recovered on concerns that Greece could default on its EUR 770 million payment to IMF due tomorrow.
Moreover, the metal has ignored the strength in the USD index and the hardness in the US Treasury yields. The uptick could be a delayed reaction to the Chinese rate cut, however, the rate cut trade has not been markedly strong in other assets, especially AUD/USD, which has dipped into losses.
Gold Technical Levels
The immediate resistance is seen at 1192.93 (50-DMA), above which gains could be extended to 1199.5 (May 5 high). On the flip side, a break below 1189.37 (hourly 200-MA), could send the metal back to 1185.86 (hourly 50-MA).
Gold: Approaching 50-DMA
The metal took out its hourly 200-MA resistance at USD 1189.37/Oz and is fast approaching its 50-DMA located at USD 1192.23/Oz levels. The safe haven metal may have recovered on concerns that Greece could default on its EUR 770 million payment to IMF due tomorrow.
Moreover, the metal has ignored the strength in the USD index and the hardness in the US Treasury yields. The uptick could be a delayed reaction to the Chinese rate cut, however, the rate cut trade has not been markedly strong in other assets, especially AUD/USD, which has dipped into losses.
Gold Technical Levels
The immediate resistance is seen at 1192.93 (50-DMA), above which gains could be extended to 1199.5 (May 5 high). On the flip side, a break below 1189.37 (hourly 200-MA), could send the metal back to 1185.86 (hourly 50-MA).