27 Apr 2015
Japan downgrade ignored by Gold
FXStreet (Mumbai) - The Japanese rating downgrade announced by Fitch on Monday failed to have any impact on gold prices as the metal traded lackluster around USD 1182-1183/Oz levels.
Safe havens hardly react
Gold, along with other safe haven assets like US treasuries failed to strengthen after the Japanese downgrade news hit the wires. The rating agency Fitch downgraded Japan's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'A' from 'A+’, citing fiscal concerns.
The yellow metal has been stuck in the narrow range of USD 1179-1183 right from the onset of the European session. The Greece concerns also failed to strengthen prices. Moreover, a 0.3% gain in the USD index could have capped gains in the metal.
Gold Technical Levels
The immediate support is seen at 1178.5, under which the metal could drop to 1175.00. On the flip side, a break above 1183.5 could drive prices higher to 1186.90 (hourly 50-MA).
Safe havens hardly react
Gold, along with other safe haven assets like US treasuries failed to strengthen after the Japanese downgrade news hit the wires. The rating agency Fitch downgraded Japan's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'A' from 'A+’, citing fiscal concerns.
The yellow metal has been stuck in the narrow range of USD 1179-1183 right from the onset of the European session. The Greece concerns also failed to strengthen prices. Moreover, a 0.3% gain in the USD index could have capped gains in the metal.
Gold Technical Levels
The immediate support is seen at 1178.5, under which the metal could drop to 1175.00. On the flip side, a break above 1183.5 could drive prices higher to 1186.90 (hourly 50-MA).