Gold Drops to 50-DMA as Equities Extend Rally, Dollar Strengthens
Gold
prices fell to 50-DMA of $1232.63 as Asian equities extended the
risk-on rally seen on Wednesday and the US dollar strengthened to 95.00
handle.
Drops for third consecutive day
The
metal is trading weak for the third consecutive day as risk-on rally in
the equities is restricting safe haven demand for the metal. In
overnight trading, Dow index also strengthened 1%. Prices thus fell to a
session low of $1229 levels before recovering to 50-DMA level of
$1232.63 levels.
Ahead in the day, the metal remains at the mercy of action in the dollar index and European stock markets.
Gold Technical Levels
The
immediate resistance is seen at $1244.12 (Mar 30 high), above which
prices could target $1262.77 (Apr 12 high). On the other hand, a break
below $1232.694 (50-DMA) would expose $1207.69 (Mar 28 low).
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