25 Mar 2015
Gold: USD 1205/Oz or USD 1181/Oz?
FXStreet (Mumbai) - Gold prices are up for the sixth consecutive session, although the metal is at the mercy of the US durable goods orders report due for release later today.
Stuck between key Fibo levels
The metal, currently trading at USD 1194.5/Oz, is stuck between the 38.2% and 23.6% Fib retracement (of 1307.3-1142.6) located at USD 1205.7 and USD 1181.5. The gains witnessed today are largely due to the weakness in the USD index. However, the US dollar could see a sharp rebound in case the US durable goods data beats market expectation by a wide margin. In such a case, the metal could drop to the 23.6% Fib retracement located at USD 1181.5
On the other hand, a weaker-than-expected US durable goods report could further cement expectations of a delay in the US rate hike, thereby leading to a further USD weakness. In such a case, Gold could rise to 38.2% Fib retracement located at USD 1205.7.
Gold Technical Levels
The major resistance is seen at 1205.70, above which the pair could rise to 100-DMA at 1215.30. On the flip side, a break below 1181.5, could drive the metal lower to 1170.00.
Stuck between key Fibo levels
The metal, currently trading at USD 1194.5/Oz, is stuck between the 38.2% and 23.6% Fib retracement (of 1307.3-1142.6) located at USD 1205.7 and USD 1181.5. The gains witnessed today are largely due to the weakness in the USD index. However, the US dollar could see a sharp rebound in case the US durable goods data beats market expectation by a wide margin. In such a case, the metal could drop to the 23.6% Fib retracement located at USD 1181.5
On the other hand, a weaker-than-expected US durable goods report could further cement expectations of a delay in the US rate hike, thereby leading to a further USD weakness. In such a case, Gold could rise to 38.2% Fib retracement located at USD 1205.7.
Gold Technical Levels
The major resistance is seen at 1205.70, above which the pair could rise to 100-DMA at 1215.30. On the flip side, a break below 1181.5, could drive the metal lower to 1170.00.