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Gold recovers as US equities fall

FXStreet (Mumbai) - Gold is back above its 5-DMA located at USD 1155.70/Oz as the losses in the US equity markets triggered flight towards safe haven assets like Gold and US Treasuries.

Gold: Eye on 10-DMA?

The metal could extend gains to its 10-DMA located at USD 1160.06 if the US equities extend losses. At the moment, the DJIA is down 0.83% at 17,828.50, while the S&P 500 is down 0.49% at 2070.90. Meanwhile, the metal could also find support if the USD index, down 0.40% at 99.74, extends losses due to weakness in the US Treasury yields. Moreover, no major data is due of the US now. Thus, Gold is likely to take cues from the US equity and Treasury market.

Gold Technical Levels

The immediate support is seen at 1147, under which prices could drop to 1142.4. On the flip side, resistance is seen at 1160.60 (10-DMA), above which gains could be extended to 1173.4 levels.

Remain long USD/JPY – GrowthAces

The GrowthAces Research Team remains long on USD/JPY, explaining that both macros and technicals support an upside climb for the pair, targeting 123.55 levels.
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