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22 Apr 2015
Gold drops to one-week low
FXStreet (Mumbai) - Gold prices fell to one-week low of USD 1188.6/Oz after the Existing home sales figure in March rose its highest level since September 2013.
Trades below 50-DMA
The strong housing data and the resulting strength in the USD has pushed the yellow metal below its 5-DMA located at USD 1191.41/Oz levels. The existing home sales in March rose 6.1% in March to 5.19 million, beating the estimate of a 3.00% rise. The last month’s figure stands unrevised at 4.88 million. Consequently, the USD index recovered losses to trade marginally positive at 98.23.
Earlier today, the metal was rejected at USD 1204-1205 levels despite weakness in the USD; which pushed prices below the USD 1200 mark. A strong US data further added to the bearish momentum. It remains to be seen if the metal finds support from the ongoing Greece issue and moderate weakness seen in the US stocks.
Gold Technical Levels
The metal currently trades at USD 1187.9/Oz; down 1.20% for the day. The immediate resistance is seen at 1191.38 (50-DMA), above which the metal could re-test 1200 levels. On the flip side, a break below the immediate support at 1183.7 (Apr. 14 low), could drive prices lower to 1178.5 (Mar. 31 low).
Trades below 50-DMA
The strong housing data and the resulting strength in the USD has pushed the yellow metal below its 5-DMA located at USD 1191.41/Oz levels. The existing home sales in March rose 6.1% in March to 5.19 million, beating the estimate of a 3.00% rise. The last month’s figure stands unrevised at 4.88 million. Consequently, the USD index recovered losses to trade marginally positive at 98.23.
Earlier today, the metal was rejected at USD 1204-1205 levels despite weakness in the USD; which pushed prices below the USD 1200 mark. A strong US data further added to the bearish momentum. It remains to be seen if the metal finds support from the ongoing Greece issue and moderate weakness seen in the US stocks.
Gold Technical Levels
The metal currently trades at USD 1187.9/Oz; down 1.20% for the day. The immediate resistance is seen at 1191.38 (50-DMA), above which the metal could re-test 1200 levels. On the flip side, a break below the immediate support at 1183.7 (Apr. 14 low), could drive prices lower to 1178.5 (Mar. 31 low).