23 Dec 2014
Gold plunges nearly 2% in overnight US trading
FXStreet (Mumbai) - Gold prices on Comex traded lower in Asian morning, plunging nearly 2% in the overnight US session witnessing increased volatility in the metal, highest since January 2014.
Currently, gold prices trades at USD 1178.60/Oz, down -0.10% on the day, having posted day’s low at 1173.30 levels. Gold prices dropped the most in two weeks as automatic sell-stop loss orders got triggered at 1192 levels after U.S. home sales tumbled to a six-month low in November after two straight months of strong increases, raising concerns over the housing market recovery. Falling oil prices also added to the losses in gold prices as it dulled gold’s appeal as a hedge against oil-led inflation.
Gold prices may remain cautious ahead of a series of US economic data due for release later in the day, as market enters into thin trading in this holiday shortened week.
Gold Technical Levels
The metal has an immediate resistance at 1189 (5-DMA), above which gains could be extended to 1192.90 (Nov 14 High) levels. Meanwhile, support stands at 1170.70 (Dec 22 Close), below which doors could open for 1169.40 (Dec 9 Low) levels.
Currently, gold prices trades at USD 1178.60/Oz, down -0.10% on the day, having posted day’s low at 1173.30 levels. Gold prices dropped the most in two weeks as automatic sell-stop loss orders got triggered at 1192 levels after U.S. home sales tumbled to a six-month low in November after two straight months of strong increases, raising concerns over the housing market recovery. Falling oil prices also added to the losses in gold prices as it dulled gold’s appeal as a hedge against oil-led inflation.
Gold prices may remain cautious ahead of a series of US economic data due for release later in the day, as market enters into thin trading in this holiday shortened week.
Gold Technical Levels
The metal has an immediate resistance at 1189 (5-DMA), above which gains could be extended to 1192.90 (Nov 14 High) levels. Meanwhile, support stands at 1170.70 (Dec 22 Close), below which doors could open for 1169.40 (Dec 9 Low) levels.