25 Feb 2016
Gold firmer on safe-haven appeal, fund inflows
A volatile trading session seen on Wednesday, the yellow metal has regained its upside momentum, erasing early losses, as risk-off seeps back into markets amid China stocks slump.
Gold eyes $ 1250
Currently, gold rises 0.21% to 1241.80, easing slightly from fresh daily highs reached at 1243.20 some minutes ago. The increasing demand for safe-havens, after the sudden crash in the Chinese equities rattled investors’ confidence in the risky assets and hence, traders turned to the ultimate safety bet in gold amid market unrest and uncertainty.
Moreover, gold also found support from increasing inflows into SPDR Gold Trust, the top gold ETF. On Wednesday, holdings of the fund rose further to 760.32 tonnes, the highest since March 2015.
Meanwhile, the ongoing weakness in the US dollar across the board on the back of uncertainty over further Fed rate hikes this year also boosted the upside in the precious metal. Later today, the crucial US durable goods data will be closely watched by the bullion traders ahead of Friday’s prelim GDP report.
Gold Technical Levels
The metal has an immediate resistance at 1250/1250.10 (psychological levels/ Feb 24 High) and 1260.80 (Feb 11 High). Meanwhile, the support stands at 1232.33 (daily pivot) below which doors could open for 1224.82 (5-DMA).
Gold eyes $ 1250
Currently, gold rises 0.21% to 1241.80, easing slightly from fresh daily highs reached at 1243.20 some minutes ago. The increasing demand for safe-havens, after the sudden crash in the Chinese equities rattled investors’ confidence in the risky assets and hence, traders turned to the ultimate safety bet in gold amid market unrest and uncertainty.
Moreover, gold also found support from increasing inflows into SPDR Gold Trust, the top gold ETF. On Wednesday, holdings of the fund rose further to 760.32 tonnes, the highest since March 2015.
Meanwhile, the ongoing weakness in the US dollar across the board on the back of uncertainty over further Fed rate hikes this year also boosted the upside in the precious metal. Later today, the crucial US durable goods data will be closely watched by the bullion traders ahead of Friday’s prelim GDP report.
Gold Technical Levels
The metal has an immediate resistance at 1250/1250.10 (psychological levels/ Feb 24 High) and 1260.80 (Feb 11 High). Meanwhile, the support stands at 1232.33 (daily pivot) below which doors could open for 1224.82 (5-DMA).