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21 Jan 2016
Gold struggles to sustain above $1100
FXStreet (Mumbai) - The drop in the safe haven demand due to the uptick in the European shares is making it hard for Gold to sustain above USD 1100/Oz levels.
Will it take out 100-DMA?
Prices failed to sustain above the 100-DMA on Wednesday and again ran into offers as it neared 100-DMA. The metal may gain momentum once again if the ECB’s Draghi refrains from hinting at more easing and paves way for more risk aversion. Prices may rise above 100-DMA in that case.
However, the odds of a move above 100-DMA would drop if Draghi hints at more easing and markets respond positively.
Gold Technical Levels
A break above the previous day’s high of 1109.70 would open doors for a re-test of 1118.85 (50% of Oct high-Dec low). On the other hand, a break below 1095.26 (Jan 14 high) could see prices drop to 1080.48 (23.6% of Oct high – Dec low).
Will it take out 100-DMA?
Prices failed to sustain above the 100-DMA on Wednesday and again ran into offers as it neared 100-DMA. The metal may gain momentum once again if the ECB’s Draghi refrains from hinting at more easing and paves way for more risk aversion. Prices may rise above 100-DMA in that case.
However, the odds of a move above 100-DMA would drop if Draghi hints at more easing and markets respond positively.
Gold Technical Levels
A break above the previous day’s high of 1109.70 would open doors for a re-test of 1118.85 (50% of Oct high-Dec low). On the other hand, a break below 1095.26 (Jan 14 high) could see prices drop to 1080.48 (23.6% of Oct high – Dec low).