Gold Catches Fresh Bid in Asia, Re-Takes $ 1250

Gold Catches Fresh Bid in Asia, Re-Takes $ 1250

21 April 2016, 06:19
Roberto Jacobs
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Gold Catches Fresh Bid in Asia, Re-Takes $ 1250

Gold reversed previous decline and swung back into the bids in the mid-Asian session, despite risk-on trades picking-up pace amid higher Asian equities.

Gold regains hourly 200-SMA

Currently, gold trades +0.37% at 1250.15, easing-off session highs printed at 1251.29 last hour. The bullion regained momentum and climbed back into the positive territory as the US dollar turned lower against its major peers. However, the upside looks restricted as risk-on sentiment returned to markets following overnight recovery in the oil prices. The demand for the higher-yielding/ risk currencies is on the rise amid improving risk appetite on rallying Asian stocks, which keeps a lid on the prices.

The precious metal failed to sustain at higher levels in the last US session and extended its overnight retreat towards hourly 200-SMA around 1243-42 levels, before finding fresh bids in early Asia and swung back into gains. Looking ahead, the bullion now awaits the US datasets for fresh USD moves, while the upcoming ECB meeting is also expected to have significant impact on the USD priced-in gold.

Gold Technical Levels

The metal has an immediate resistance at 1256/58 (Apr 19 & 20 high) and 1260/1262.77 (round number/ Apr 12 High). Meanwhile, the support stands at 1243/42 (10-DMA/ 1h 200-SMA) below which doors could open for 1237/34 (50 & 20-DMA).


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