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27 Jan 2015
Gold extends gains on weak US data
FXStreet (Mumbai) - Gold prices neared USD 1290/OZ levels after the US durable goods order unexpectedly declined in December.
The yellow metal rose to a high of USD 1289.30/Oz after the data in the Us showed durable goods orders contracted by 3.4% month-on-month, missing the expected rise of 0.5%. The previous month’s figure was revised lower to -2.7%. Orders for core capital goods - a measure of business investment - fell 0.6% in December for the second straight month.
The weak data pushed the 10-year treasury yields to 1.775%; down 5.2 basis points for the day, thereby pushing the USD index lower to 94.65 levels. Thus, Gold prices strengthened to trade at the day’s high.
Gold Technical Levels
The immediate support is seen at 1280.00 (hourly 10-SMA), under which the metal could re-test 1275.6 levels. Meanwhile, resistance is seen at 1289.70 (5-DMA) and 1294 levels.
The yellow metal rose to a high of USD 1289.30/Oz after the data in the Us showed durable goods orders contracted by 3.4% month-on-month, missing the expected rise of 0.5%. The previous month’s figure was revised lower to -2.7%. Orders for core capital goods - a measure of business investment - fell 0.6% in December for the second straight month.
The weak data pushed the 10-year treasury yields to 1.775%; down 5.2 basis points for the day, thereby pushing the USD index lower to 94.65 levels. Thus, Gold prices strengthened to trade at the day’s high.
Gold Technical Levels
The immediate support is seen at 1280.00 (hourly 10-SMA), under which the metal could re-test 1275.6 levels. Meanwhile, resistance is seen at 1289.70 (5-DMA) and 1294 levels.