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Gold trades above 50-DMA

FXStreet (Mumbai) - Gold prices rallied ahead of the US session to trade above the 50-DMA level of USD 1204, after china cut interest rates for the first time in more than two years.

Gold traded 1.20% higher at USD 1205.30/Oz levels at the time of writing. The metal is flirting with the USD 1200 mark throughout this week, although prices are trading above the 50-DMA for the first time this week. Moreover, the metal rallied after European Central Bank’s stimulus expansion talks were followed by a 40 basis points cut in the interest rates in China.

The yellow is likely to remain strong, although it remains to be seen whether it manages to sustain gains above the 50-DMA amid sharp rise in the European and US equities.

Gold technical Levels

Gold can extend gains to 1210 levels, now that it trades above the 50-DMA. Meanwhile, a break below the 50-DMA level of 1204, shall open doors for the re-test of 1195 and 1190 levels.

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