Back
29 Dec 2014
Gold steadies, faces stiff barrier at 20-DMA
FXStreet (Mumbai) - Gold prices on Comex steadies in Asian morning, recovering from day’s low posted previously amid thin trading due year-end holidays.
Currently, gold prices trades modestly flat at USD 1195.80/Oz, having posted day’s low at 1192.50 levels. Gold prices erased short-covering gains from the previous session and drifted lower as dollar regained strength trading close to multi-year peaks. Moreover, bearish investor sentiment seen on outflows from SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, which sits at six-year low, also hurt demand for the yellow metal. The fund's holdings fell 0.08 percent to 712.30 tonnes on Friday, a six-year low.
Gold prices remains vulnerable to downside risk as improving US economy may raise concerns that the Federal Reserve will lift interest rates sooner than expected in 2015.
Gold Technical Levels
The metal has an immediate resistance at 1199.10 (Dec 26 High), above which gains could be extended to 1203.60 (Dec 22 High) levels. Meanwhile, support stands at 1188.50 (Dec 18 Close), below which doors could open for 1170.70 (Dec 22 Close) levels.
Currently, gold prices trades modestly flat at USD 1195.80/Oz, having posted day’s low at 1192.50 levels. Gold prices erased short-covering gains from the previous session and drifted lower as dollar regained strength trading close to multi-year peaks. Moreover, bearish investor sentiment seen on outflows from SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, which sits at six-year low, also hurt demand for the yellow metal. The fund's holdings fell 0.08 percent to 712.30 tonnes on Friday, a six-year low.
Gold prices remains vulnerable to downside risk as improving US economy may raise concerns that the Federal Reserve will lift interest rates sooner than expected in 2015.
Gold Technical Levels
The metal has an immediate resistance at 1199.10 (Dec 26 High), above which gains could be extended to 1203.60 (Dec 22 High) levels. Meanwhile, support stands at 1188.50 (Dec 18 Close), below which doors could open for 1170.70 (Dec 22 Close) levels.