Gold Breaches Hourly 200-SMA Support in Asia
The yellow metal extends weakness into a third day today, accelerating
further below the hourly 200-SMA support, amid non-existent demand for
the safe-havens.
Gold off lows, regains 50-DMA at 1232.60
Currently,
gold drops -0.60% to trade at 1233.05, having posted day’s low at
1228.99 and day’s high at 1241.61. The bullion poses a minor-recovery,
although remains on the back foot amid renewed optimism in the Asian
markets, which boosts the demand for the higher-yielding assets at
expense of the safety bets.
Moreover, the US dollar remains
strongly bid against its major peers on the back of a number of hawkish
Fed speaks lately, and therefore, adds to the downside pressure on gold. Meanwhile, the US dollar index jumps +0.17% to 94.97 levels.
Later
today, the immediate focus remains on the US inflation figures that are
expected to shed more light on the US economic progress and eventually
on the Fed rate hike outlook.
Gold Technical Levels
The
metal has an immediate resistance at 1240 (round number) and 1244.83
(5-DMA). Meanwhile, the support stands at 1225/23 (previous lows) below
which doors could open for 1220 (psychological levels).
News provided by: 
