26 Jan 2016
Gold hit 12-week high in Asia
FXStreet (Mumbai) - Gold prices rose to a 12-week high of USD 1113.79/Oz levels in Asia as the losses in the Chinese and other Asian stocks pushed up safe haven demand for the yellow metal.
Focus remains on oil
The risk sentiment in the financial markets across the globe remains at the mercy of the oil prices. Hence, gold is likely to move in opposite direction to oil prices.
As of now, both the oil benchmarks are trading in the red and thus odds of a risk aversion in the European equities are high. Consequently, the safe haven demand for the metal could stay intact. Meanwhile, the USD index is largely flat and thus offers now clues to the yellow metal.
Gold Technical Levels
The metal currently trades around USD 1112/Oz. The immediate resistance is seen at 1118.85 (50% of Oct high-Dec low), above which the prices could test 1126.78 (Aug 13 high). On the other hand, a break below 1104.91 (50-DMA) could send prices lower to 1092.45 (Jan 21 low).
Focus remains on oil
The risk sentiment in the financial markets across the globe remains at the mercy of the oil prices. Hence, gold is likely to move in opposite direction to oil prices.
As of now, both the oil benchmarks are trading in the red and thus odds of a risk aversion in the European equities are high. Consequently, the safe haven demand for the metal could stay intact. Meanwhile, the USD index is largely flat and thus offers now clues to the yellow metal.
Gold Technical Levels
The metal currently trades around USD 1112/Oz. The immediate resistance is seen at 1118.85 (50% of Oct high-Dec low), above which the prices could test 1126.78 (Aug 13 high). On the other hand, a break below 1104.91 (50-DMA) could send prices lower to 1092.45 (Jan 21 low).