Gold Slips in Asia, Bears Back in Control?

Gold Slips in Asia, Bears Back in Control?

29 March 2016, 11:01
Roberto Jacobs

Gold Slips in Asia, Bears Back in Control?

Gold prices failed to sustain the overnight recovery from one-month lows and slipped back into the red zone in the Asian session this Tuesday.

Gold drops below $ 1220 mark

Currently, gold drops -0.28% to 1219.17, retreating from session tops posted just ahead of $ 1223. The yellow metal faced rejection once again ahead of 1223 levels and drifted lower thereon to hit fresh session lows at 1218.41, before recovering some ground over the last hour.

The spot slipped this session as the US dollar is seen making minor recovery attempts against a basket of currencies after Monday’s mixed US data-led sell-off. Meanwhile, the US dollar index trades 0.08% higher at 96.05, having recovered slightly from 95.84 troughs.

On Monday, the bullion witnessed volatile trading, rising nearly $ 16 intraday after printing fresh one-month lows at 1207.69. The prices jumped as high as $ 1223 on mixed US data releases, with the softer core PCE index having poured cold water on Fed’s April/June hike expectations.

Looking ahead, the US consumer confidence data and Fed Chair Yellen’s speech later in the NY session will emerge key risk events for the precious metal.

Gold Technical Levels

The metal has an immediate resistance at 1223/1223.12 (Mar 28 high) and 1230/36 (round figure/ 10-DMA). Meanwhile, the support stands at 1217.74/1216.43 (1h 50-SMA/ NY Low) below which doors could open for 1207.69/1204.63 (Mar 28 Low/ 50-DMA).

(Market News Provided by FXstreet)

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