Oil Sell-Off Isn’t Helping Gold
Oil sell-off and the resulting risk-off in the markets is not helping gold, which has surrendered gains to trade around $1233/Oz levels.
Trades below 50-DMA
Metal
hovers below its 50-DMA level of $1234 levels after having clocked a
high of $1240 in early Asia. Doha talks failed to reach a productive
conclusion, leading to a big gap down opening in oil. The resulting
sell-off in commodity currencies and weakness in equities has failed to
keep the metal strong.
Meanwhile, the USD index is trading flat
around 94.70 levels and thus offering no cues to the metal. The focus
ahead is on the equity market sentiment as data calendar in Europe and
US is empty.
Gold Technical Levels
The
immediate hurdle is noted at $1234.53 (50-DMA), above which prices could
target $1244.10 (Mar 30 high). On the other hand, a violation of
immediate support at $1230 (daily low) would expose $1207.47 (Mar 28
low).
