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27 Jan 2015
Gold inches closer to USD 1300/Oz
FXStreet (Mumbai) - The sharp drop in the US stock markets, coupled with a weak USD has pushed Gold prices close to USD 1300/Oz levels.
The metal clocked a high of USD 1298.50/Oz, before settling at USD 1296.50 at the time of writing. The gain of more than one percentage point has been largely driven by the fall in the US equities. The DJIA has weakened almost 400 points, while the S&P declined 36.69 points. All major indices weakened in the range of 1.8% to 2.8%.
Moreover, the weak economic data coupled with poor corporate earnings weakened the treasury yields and the US dollar, which further help strengthen the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1300, above which the metal could test 1307.3 (Jan. 22nd high). Meanwhile, immediate support is seen at 1290.28 (hourly 100-SMA) and 1285.59 (hourly 50-SMA) levels.
The metal clocked a high of USD 1298.50/Oz, before settling at USD 1296.50 at the time of writing. The gain of more than one percentage point has been largely driven by the fall in the US equities. The DJIA has weakened almost 400 points, while the S&P declined 36.69 points. All major indices weakened in the range of 1.8% to 2.8%.
Moreover, the weak economic data coupled with poor corporate earnings weakened the treasury yields and the US dollar, which further help strengthen the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1300, above which the metal could test 1307.3 (Jan. 22nd high). Meanwhile, immediate support is seen at 1290.28 (hourly 100-SMA) and 1285.59 (hourly 50-SMA) levels.