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Gold rises above 100-DMA as IMF cut global growth forecasts

FXStreet (Mumbai) - Gold prices rose above 100-DMA located at USD 1143.89 for the third time in less than two months after the International Monetary Fund (IMF) reduced the global growth forecasts and the USD suffered broad based losses.

Will Gold sustain above 100-DMA

The metal has repeatedly failed to extend gains over and above 100-DMA, leading to sharp losses since early March this year. On the last two occasions – Aug 24 and Sep 24 – the metal suffered losses worth $40-$60 after failing to sustain above its 100-DMA.

However, the prospects of a further rise above 100-DMA are high this time around given that 2015 Fed rate hike bets are almost negligible now and the markets are questioning whether the Fed could manage to raise rates next year or tilts towards QE 4.

Gold Technical Levels

At USD 1147.67/Oz, the immediate resistance is seen at 1156.70 (Sept 24 high), followed by a major hurdle at 1169.99 (Aug 24 high) and 1200 levels. On the downside, a break below 100-DMA at 1143.89 would expose 1132.90 (Nov 2014 low) and 1121.50 (50-DMA).

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