19 Jan 2015
XAU/USD likely to drop towards 1271.50 today – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, notes that XAU/USD might drop to 1272/1271.50 levels today, but expects the downside to remain capped amidst continued demand for safe-haven assets ahead of Chinese GDP release tomorrow.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) rose to fresh four month highs on Friday at 1282.13 levels, breaking above the 200-DMA located at 1252.85 to settle at 1280.26 levels after bearish US retail sales and inflation print raised speculations of a delayed US Fed rate lift-off.”
“The pair edged lower today as the investors locked in gains after the recent rally. Moreover, the daily RSI is also seen in the heavily overbought zone and is turning lower at 71.21 levels. The pair is expected to drop to 1272-1271.50 levels, breaking below the hourly 20-DMA located at 1272.75.“
“However, the downside may remain capped amid continued demand for safe-haven assets ahead of Chinese GDP data due for release tomorrow.”
“The XAU bulls may jump back into the bids in case of a failure to break below 1271.50 levels, which may take the pair higher to retest 1282.13 (Friday’s High). The lack of strength in the upside is backed by the flattish hourly RSI at 62.40 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) rose to fresh four month highs on Friday at 1282.13 levels, breaking above the 200-DMA located at 1252.85 to settle at 1280.26 levels after bearish US retail sales and inflation print raised speculations of a delayed US Fed rate lift-off.”
“The pair edged lower today as the investors locked in gains after the recent rally. Moreover, the daily RSI is also seen in the heavily overbought zone and is turning lower at 71.21 levels. The pair is expected to drop to 1272-1271.50 levels, breaking below the hourly 20-DMA located at 1272.75.“
“However, the downside may remain capped amid continued demand for safe-haven assets ahead of Chinese GDP data due for release tomorrow.”
“The XAU bulls may jump back into the bids in case of a failure to break below 1271.50 levels, which may take the pair higher to retest 1282.13 (Friday’s High). The lack of strength in the upside is backed by the flattish hourly RSI at 62.40 levels.”