Gold breaks above $1200, runs into Fibo resistance

The drop in European stocks, helped Gold break above USD 1200 mark, but the bullish momentum appears to have run out of steam around 1211.94 (23.6% of Dec low – Feb high).

Oil trims gains, stocks drop and Gold rises

Oil took the center stage today on hopes the producers meeting would result in production cut. Saudi and Qatar did agree on production freeze, but that is contingent on other nations agreeing to do the same.

Consequently, oil benchmarks – WTI and Brent – trimmed major part of their gains and pushed stocks lower. This helped Gold rally to USD 1211.94 levels. Prices remain at the mercy of the action in oil prices and the resulting impact on the equity markets.

Gold Technical Levels

The immediate hurdle is seen at 1224.23 (Apr 6 high), above which the prices could test 1232.41 (May 18 high). On the other hand, a breakdown of immediate support at 1200 could send prices back to 1191.57 (Oct 15 high).

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