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3 Feb 2015
Gold continues to slide as Greek fears subside
FXStreet (Mumbai) - Gold prices extended the slide in the US session on hopes that the newly elected Greek government would be able to reach a deal with its international creditors.
Gold trades below weekly 50-SMA
Prices fell below the weekly 50-SMA located at USD 1266.08/Oz levels as risk appetite returned in the financial markets on reports the Greek Finance Minister Yanis Varoufakis has outlined a “menu of debt swaps” to ease the burden of the country’s debt, under which creditors would swap outstanding debt for new growth-linked bonds. So far no official confirmation has come through, still markets have found comfort from these reports.
Gold prices may receive support due to fading optimism over the US economy after the US construction spending rose less than expected in December, while manufacturing growth slowed.
Gold Technical Levels
The metal currently trades 1.47% lower at USD 1258.10/Oz levels. The immediate support is seen at 1250, under which prices could fall to 1238.3 levels. On the flip side, resistance is seen at 1266.04 (50-week SMA) and 1271.40 (5-DMA) levels.
Gold trades below weekly 50-SMA
Prices fell below the weekly 50-SMA located at USD 1266.08/Oz levels as risk appetite returned in the financial markets on reports the Greek Finance Minister Yanis Varoufakis has outlined a “menu of debt swaps” to ease the burden of the country’s debt, under which creditors would swap outstanding debt for new growth-linked bonds. So far no official confirmation has come through, still markets have found comfort from these reports.
Gold prices may receive support due to fading optimism over the US economy after the US construction spending rose less than expected in December, while manufacturing growth slowed.
Gold Technical Levels
The metal currently trades 1.47% lower at USD 1258.10/Oz levels. The immediate support is seen at 1250, under which prices could fall to 1238.3 levels. On the flip side, resistance is seen at 1266.04 (50-week SMA) and 1271.40 (5-DMA) levels.