Gold drops below USD 1230/Oz

11 February 2015, 16:27
Andrius Kulvinskas
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Gold prices extended the decline to trade well below USD 1230/Oz levels, after hovering around the 50-DMA located at USD 1234 levels in the last couple of hours. 

Gold prices weighed down by USD strength

The latest bout of weakness may have been triggered largely due to an across the board strength seen in the US dollar. The USD index is up 0.31% at 95.16 levels. Meanwhile, the repeated struggle to rise above 50-DMA at USD 1234 could have triggered a technical sell-off as well. 

Moreover, Gold and other safe haven assets like the Japanese Yen and the US Treasuries have failed to gain despite the Greek led uncertainty in the markets and concerns of escalating tension in Ukraine. The metal may extend losses even further if the US equity markets manage to recover losses later in the day.

Gold Technical Levels

At the moment, the metal trades 0.59% lower at USD 1224.90/Oz levels. The immediate support is seen at 1223.2, under which a major support is seen at 1207.5 levels. On the flip side, resistance is seen at the 50-DMA located at 1234 and at the 200-DMA located at 1244 levels.
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