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Gold/EUR: gains capped at 50-DMA

FXStreet (Mumbai) - Gold in EUR terms or XAU/EUR pair spiked on Thursday, but ran into offers at its 50-DMA after Fed’s Yellen said a 2015 rate hike is still on the table.

Hovers near 50-DMA

The metal currently trades just below its 50-DMA located at EUR 1031.31/Oz levels. The dropping Fed rate hike bets and the risk aversion in the equity markets helped the safe haven metal on Thursday. However, Fed’s Yellen kept the hopes for a 2015 rate hike alive and that has been well received by the markets so far.

The pan-European Euro Stoxx 50 futures currently trade 2% higher. Consequently, the safe haven metal in EUR terms is trading in the sideways manner around EUR 1028/Oz levels.

Gold (EUR) Technical Levels

The immediate resistance is located at 1031.31 (50-DMA), above which gains could be extended to 1035.05 (Aug 21 high). On the other side, support is located at 1025.82 (daily low) and 1018.62 (Sep 1 high).

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