交易新闻
3 Feb 2016
Gold strengthens in Europe, tests offers around 200-DMA
FXStreet (Mumbai) - Gold found safe haven bids and ticked higher in Europe, but is struggling to take out offers around 200-DMA at USD 1129.41 levels.
Risk-off supports Gold
Prices were struggling in Asia and early Europe, before the risk-off mood in Europe came to gold’s rescue. The European stocks have turned lower for the third straight day as investors worry about the future course of central bank actions if the negative rates strategy fails to prop up economic growth.
Moreover, the metal not only benefits from the safe haven demand, but also from the negative rates environment since investors prefer “zero yield” over “negative yields”.
Gold Technical Levels
The pair hovers around USD 1130/Oz levels. The immediate resistance is seen at 1131.09 (previous day’s high), which if taken out shall open doors for a rally to 1136 (61.8% of Oct high-Dec low). On the other hand, a break below 1128.12 (Jan 27 high) could shift risk in favor of a drop to 5-DMA at 1123.44.
Risk-off supports Gold
Prices were struggling in Asia and early Europe, before the risk-off mood in Europe came to gold’s rescue. The European stocks have turned lower for the third straight day as investors worry about the future course of central bank actions if the negative rates strategy fails to prop up economic growth.
Moreover, the metal not only benefits from the safe haven demand, but also from the negative rates environment since investors prefer “zero yield” over “negative yields”.
Gold Technical Levels
The pair hovers around USD 1130/Oz levels. The immediate resistance is seen at 1131.09 (previous day’s high), which if taken out shall open doors for a rally to 1136 (61.8% of Oct high-Dec low). On the other hand, a break below 1128.12 (Jan 27 high) could shift risk in favor of a drop to 5-DMA at 1123.44.