23 Februari 2016 3:13 AM
The bullion staged a solid comeback in the Asian trades, having found good support just ahead of $ 1200 mark, as risk-off sentiment returned to markets on renewed oil price decline.Gold: 200-DMA on sight at $ 1220.27
Currently, gold rises 0.54% to 1216.60, receding slightly from fresh session highs printed at 1217.80 few minutes ago. The yellow metal regained poise and climbed back sharply higher after the oil prices fell back in the red and crushed the appetite for riskier assets such as the equities. Hence, investors ran for cover and sought safety in the traditional safe-haven gold. Japan’s Nikkei trades modestly flat, while the Chinese indices are down -0.50% to -1%.
Moreover, the US dollar retreated against a basket of six major currencies on the back of correction, following nearly 1% rise seen the day earlier. The US dollar index drops -0.12% to 97.27.
Looking ahead, we have plenty of risk events lined up for release today that will have major impact on the dollar-priced in gold. The US calendar offers the consumer confidence, existing home sales and S&P/CS Composite-20 HPI y/y.
Gold Technical Levels
The metal has an immediate resistance at 1120.28/83 (200-DMA/ 10-DMA) and 1226.10 (Feb 22 High). Meanwhile, the support stands at 1200 (key psychological level) below which doors could open for 1196.50/24 (Feb 17 Low/ 20-DMA).
(Market News Provided by FXstreet)
