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22 May 2015
Gold poised to suffer weekly loss
FXStreet (Mumbai) - Gold prices are more likely than not to suffer a weekly loss on the back of a recovery in the US dollar seen throughout the week.
Rejected at weekly 50-SMA
The metal was rejected earlier this week at its 50-week moving average located at USD 1232.30/Oz. Since then, prices have headed southwards as the US dollar recovered losses across the board. The Fed minutes released earlier this week turned out to be a non-event in the markets. Consequently, the metal remained stuck around USD 1210/Oz levels.
The drop witnessed today to the low of USD 1201.4/Oz was mainly driven by the rise in core CPI at a fastest rate since Jan 2013. The sharp rise in core CPI means inflation is moving towards the Fed target, which supports case of a rate hike in the US.
At the moment, the metal is trading at USD 1203.6/Oz, down 0.07% for the day. Compared to the previous week’s closing at USD 1224.6, the metal is down 1.71%.
Gold Technical Levels
The immediate support is seen at the psychological level of 1200, under which the metal could dip to 1192.5 (Apr. 9 low). On the other hand, the immediate resistance is located at 1207.22 (200-DMA), above which the metal could re-test the daily high at 1213.7.
Rejected at weekly 50-SMA
The metal was rejected earlier this week at its 50-week moving average located at USD 1232.30/Oz. Since then, prices have headed southwards as the US dollar recovered losses across the board. The Fed minutes released earlier this week turned out to be a non-event in the markets. Consequently, the metal remained stuck around USD 1210/Oz levels.
The drop witnessed today to the low of USD 1201.4/Oz was mainly driven by the rise in core CPI at a fastest rate since Jan 2013. The sharp rise in core CPI means inflation is moving towards the Fed target, which supports case of a rate hike in the US.
At the moment, the metal is trading at USD 1203.6/Oz, down 0.07% for the day. Compared to the previous week’s closing at USD 1224.6, the metal is down 1.71%.
Gold Technical Levels
The immediate support is seen at the psychological level of 1200, under which the metal could dip to 1192.5 (Apr. 9 low). On the other hand, the immediate resistance is located at 1207.22 (200-DMA), above which the metal could re-test the daily high at 1213.7.