12 Feb 2015
Gold inches higher
FXStreet (Mumbai) - Gold prices inched higher, taking cues from the sharp rise in other safe haven asset, Japanese Yen. Prices also received support after the Riksbank cut interest rates to negative territory and announced a QE program.
Gains capped at 50-DMA
The metal clocked a high of USD 1233/Oz levels; falling just short of the 50-DMA located at USD 1233.81. Prices have eased-off slightly to trade at USD 1226.1/Oz levels; up 0.53% for the day. The initial support came from the Japanese Yen, which gained sharply after the Bank of Japan termed more easing as counterproductive. Moreover, the rise in the safe haven Yen could have led investors to push up prices of other safe haven assets like Gold.
Gold prices also received support from the Riksbank’s decision to cut interest rates to -0.1%. The bank also announced a sovereign QE program worth SEK 10 billion. Gold prices are known to benefit from the increase in the size of central bank’s balance sheet.
Gold Technical Levels
The immediate support is seen at 1218.9, under which prices could drop to 1214.72 (100-DMA) levels. Meanwhile, resistance is seen at 1233.78 (50-DMA) and 1244.29 (200-DMA) levels.
Gains capped at 50-DMA
The metal clocked a high of USD 1233/Oz levels; falling just short of the 50-DMA located at USD 1233.81. Prices have eased-off slightly to trade at USD 1226.1/Oz levels; up 0.53% for the day. The initial support came from the Japanese Yen, which gained sharply after the Bank of Japan termed more easing as counterproductive. Moreover, the rise in the safe haven Yen could have led investors to push up prices of other safe haven assets like Gold.
Gold prices also received support from the Riksbank’s decision to cut interest rates to -0.1%. The bank also announced a sovereign QE program worth SEK 10 billion. Gold prices are known to benefit from the increase in the size of central bank’s balance sheet.
Gold Technical Levels
The immediate support is seen at 1218.9, under which prices could drop to 1214.72 (100-DMA) levels. Meanwhile, resistance is seen at 1233.78 (50-DMA) and 1244.29 (200-DMA) levels.