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27 Jan 2015
Gold strengthens as US index futures tank
FXStreet (Mumbai) - Gold prices are trading at the highest point of the day tracking sharp fall in the US index futures and the weakness in the USD index.
The yellow metal is up 0.34% at USD 1284.70/Oz levels. Prices started recovering from the low of USD 1272.1/Oz on signs of weakness in the European equities. Moreover, the major index futures in the US are indicating that Wall Street is likely to see a sharp gap down opening today. At the time of writing, the DJIA futures were down 240 points or 1.37%, while the S&P futures were down 20.05 points or 0.98%. The risk aversion on Wall Street is likely to support further gains in the yellow metal.
Meanwhile, the USD index has weakened 0.52% to trade at 94.79 levels. Further loss in the USD index is likely as the risk aversion in markets shall push the treasury yields lower. A weak USD may add to the Gold’s strength.
Gold Technical Level
The immediate support is seen at 1280.00 (hourly 10-SMA), under which the metal could re-test 1275.6 levels. Meanwhile, resistance is seen at 1287.10 and 1289.70 (5-DMA) levels.
The yellow metal is up 0.34% at USD 1284.70/Oz levels. Prices started recovering from the low of USD 1272.1/Oz on signs of weakness in the European equities. Moreover, the major index futures in the US are indicating that Wall Street is likely to see a sharp gap down opening today. At the time of writing, the DJIA futures were down 240 points or 1.37%, while the S&P futures were down 20.05 points or 0.98%. The risk aversion on Wall Street is likely to support further gains in the yellow metal.
Meanwhile, the USD index has weakened 0.52% to trade at 94.79 levels. Further loss in the USD index is likely as the risk aversion in markets shall push the treasury yields lower. A weak USD may add to the Gold’s strength.
Gold Technical Level
The immediate support is seen at 1280.00 (hourly 10-SMA), under which the metal could re-test 1275.6 levels. Meanwhile, resistance is seen at 1287.10 and 1289.70 (5-DMA) levels.