Gold Trades Comatose in Asia as Investors Await Fed
Gold traded on a flat note as investors consider the possibility of Fed indicating a possibility of rate hike this year.
Bearish 5-DMA and 10-DMA crossover
Prices have eased from Friday’s high of $1283, leading to a bearish crossover between 5-DMA and 10-DMA. Metal hit a six day low of $1225.65 as markets, after having under appreciated the possibility of hawkish Fed, turned cautious.
Moreover, oil driven risk-off in Europe failed to strengthen the yellow metal and so did a weak US retail sales data.
Gold Technical Levels
At the time of writing, gold was trading largely flat on the day around $1233/Oz. The immediate hurdle is seen at above 1240 (Feb 18 high). A violation there would expose 1261.15 (previous day’s high). On the other hand, immediate support is seen at 1227 (23.6% of Dec low-Mar high), under which prices could test bid around 1200 levels.
(Market News Provided by FXstreet)
