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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).

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