Gold Recovers Losses, But Stays Below 50-DMA
Gold has recovered losses amid weakness in European stocks, but remains below 50-DMA level of $1233.60 levels.
Eyes US data
The metal awaits US data, which is likely to show industrial production dropped another 0.1% in March following a 0.5% drop seen in February. However, the data by itself could be ignored if treasury yields and US dollar do not respond to the data.
Earlier today, prices dropped to a low of $1224.70 even though China data showed economy slowed further in first quarter of 2016. Even the Asian stocks reaction to China data was muted.
Gold Technical Levels
The immediate hurdle is noted at $1233.60 (50-DMA), above which prices could target $1244.10 (Mar 30 high). On the other hand, a violation of immediate support at $1233.30 (previous day’s low) would expose $1207.47 (Mar 28 low).
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