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15 Jan 2015
Gold declines as USD regain strength, Asian equities rise
FXStreet (Mumbai) - Gold prices retreated after the US dollar recovered most of its losses witnessed post US retail sales data yesterday, while the Asian equity markets gained strength.
The yellow metal traded 0.50% lower at USD 1228.30/Oz levels, compared to the previous session’s close at USD 1234.50/Oz levels. The metal fell from the 200-DMA level of USD 1244.30 as the USD index recovered from the low of 91.80 to trade 0.13% higher for the day at 92.42 levels. Meanwhile, the safe haven demand dropped as the Asian equities strengthened. The Shanghai composite is up 3.52%, while the Hang Seng is up 0.64%. The Japanese Nikkei index gained 1.86% tracking weak Yen, while the Indian equity markets gained more than 2% following a 25 basis point rate cut by the Reserve Bank of India. However, the Australian markets fell 0.41% on continued weakness in the metal prices.
The yellow metal may extend losses if the European equities stabilize, taking cues from the Asian markets.
Gold Technical Levels
The immediate resistance is seen at 1238.3 (Dec. 9 high), above which gains could be extended to 1244.39 (200-DMA). Meanwhile, support is seen at 1224.9 and 1221.20 (10-DMA) levels.
The yellow metal traded 0.50% lower at USD 1228.30/Oz levels, compared to the previous session’s close at USD 1234.50/Oz levels. The metal fell from the 200-DMA level of USD 1244.30 as the USD index recovered from the low of 91.80 to trade 0.13% higher for the day at 92.42 levels. Meanwhile, the safe haven demand dropped as the Asian equities strengthened. The Shanghai composite is up 3.52%, while the Hang Seng is up 0.64%. The Japanese Nikkei index gained 1.86% tracking weak Yen, while the Indian equity markets gained more than 2% following a 25 basis point rate cut by the Reserve Bank of India. However, the Australian markets fell 0.41% on continued weakness in the metal prices.
The yellow metal may extend losses if the European equities stabilize, taking cues from the Asian markets.
Gold Technical Levels
The immediate resistance is seen at 1238.3 (Dec. 9 high), above which gains could be extended to 1244.39 (200-DMA). Meanwhile, support is seen at 1224.9 and 1221.20 (10-DMA) levels.