Gold Regains 5-DMA in Asia, ECB in Focus

Gold Regains 5-DMA in Asia, ECB in Focus

2 June 2016, 06:21
Roberto Jacobs
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Gold Regains 5-DMA in Asia, ECB in Focus

Gold trades moderately higher in the Asian trades, underpinned by risk-off markets and a broadly lower US dollar, as we head towards the ECB policy decision on the interest rates.

Gold eyes 100-DMA

Currently, gold now trades +0.11% higher at 1214.59, flirting with session highs reached at 1215.91 earlier this session. The bullion extends its recovery from just ahead of 1200 levels and now males headways towards 100-DMA at 1221 as the bulls remains supported amid aggressive selling seen in the Asian equities, which reinforces risk-off trades in the markets and boosts gold’s safe-haven appeal.

Moreover, the US dollar is extending its retreat from multi-week tops against its major competitors, which also favours the dollar priced-in yellow metal. A weaker US dollar makes gold cheaper for holders in foreign currencies. The USD index drops -0.18% to 95.25 levels.

Next in focus for the metal remains the ECB policy decision, which is expected to have major impact on the EUR/USD pair, eventually influencing gold price-action.

Gold Technical Levels                                   

The metal has an immediate resistance at 1221 (100-DMA) and 1225 (round number). Meanwhile, the support stands at 1205.90 (Jun 1 Low) below which doors could open for 1200 (key support).


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