OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold flirts with hourly 50-MA

FXStreet (Mumbai) - Gold is having a tough time extending gains over and above its hourly 50-MA stationed at USD 1166.63/Oz amid moderate weakness in the USD index.

Supported by hopes of more central bank easing

The downside in the metal is being restricted by rising expectations of more monetary easing from the major central bankers across the globe after DRaghi’s hint at more easing in December was quickly countered by an interest rate cut by the People’s Bank of China (PBOC).

Meanwhile, the USD index weakened 0.10% to trade around 97.10 levels, thereby offering support to the metal. The focus now is on the US new home sales data and the action on the Wall Street.

Gold Technical Levels

The immediate resistance is seen at 1169.22 (hourly 100-MA), above which the metal could rise to 1173.46 (hourly 200-MA). On the other hand, a failure to sustain above 1166.63 (hourly 50-MA) could trigger a drop 1158.70 (Friday’s low).

Global markets mood upbeat after ECB and rate cut by PBoC – Rabobank

Piotr Matys, EM FX Strategist at Rabobank, suggests that the global stocks ended last week in a very positive mood after ECB President Draghi boosted expectations for more monetary policy stimulus in the Eurozone and the People’s Bank of China cut interest rates to prevent a sharp slowdown in economic activity.
Read more Previous

Treasury yields drop as Fed seen keeping rates low

The benchmark 10-yr treasury note in the US advanced on Monday, pushing the yield lower as dovish ECB and a rate cut from China is seen forcing the Fed to keep rates low.
Read more Next
Start livechat