7 Apr 2015
Gold moves away from 7-week highs
FXStreet (Mumbai) - Gold prices on Comex fell deep in red in Asia, drifting away from fresh seven week highs reached at 1224.50 in the previous session, largely on bounce-back in the US dollar and firmer global equities which dulled gold’s appeal as an alternative investment.
Gold back below 100-DMA
Currently, gold trades lower at 1213.10 levels, having previously posted day’s high at 1214.90 and day’s low at 1211.10. Gold prices seem to trade in a narrow range consolidating previous gains, as the USD bulls jumped back in to the bids, recovering all the NFP backed losses.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies recovered to 97.22 levels.
Moreover, adding to downside in gold prices, SPDR Gold Trust (GLD), the world's largest gold-backed exchange-traded fund, said its holdings dropped to 735.45 tonnes on Monday from 737.24 tonnes on Thursday.
Gold Technical Levels
The metal has an immediate resistance at 1214.09 (100-DMA) and 1218.36 (200-DMA) levels. Meanwhile, support stands at 1210 levels below which doors could open for 1203.06 (10-DMA) levels.
Gold back below 100-DMA
Currently, gold trades lower at 1213.10 levels, having previously posted day’s high at 1214.90 and day’s low at 1211.10. Gold prices seem to trade in a narrow range consolidating previous gains, as the USD bulls jumped back in to the bids, recovering all the NFP backed losses.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies recovered to 97.22 levels.
Moreover, adding to downside in gold prices, SPDR Gold Trust (GLD), the world's largest gold-backed exchange-traded fund, said its holdings dropped to 735.45 tonnes on Monday from 737.24 tonnes on Thursday.
Gold Technical Levels
The metal has an immediate resistance at 1214.09 (100-DMA) and 1218.36 (200-DMA) levels. Meanwhile, support stands at 1210 levels below which doors could open for 1203.06 (10-DMA) levels.