Gold Drops After Failing to Rise on Good News
Gold is down 1% today as investors are losing interest in the metal, which failed to rise on good news flow throughout last week.
Eyes 23.6% Fibo support
Prices appear on track to extend losses and test $1227 (23.6% Fibo of Dec low-Mar high). Despite dovish Fed and a resulting sell-off in USD, the metal failed to take out the monthly 100-MA hurdle of $1263.
Brussels terror attacks on Tuesday did trigger a flight to safety, but gold hardly benefited from the haven demand. Consequently, metal was offered today to a session low of $1231.61 levels. Hawkish comments from the Fed officials over the last two days could have weighed over the precious metal.
Gold Technical Levels
The immediate support is seen at $1227 (23.6% of Dec low-Mar high), under which prices could test $1211.41 (Feb 26 low) then $1200 (zero figure). Conversely, break above $1240 (Monday’s low) would expose hurdle at $1249.50 (daily high) and $1263 (monthly 100-MA).
(Market News Provided by FXstreet)