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23 Mar 2016
Gold nears 23.6% Fibo support
Gold remains weak in early US, with prices nearing 23.6% Fibo support of Dec low-Mar high located at $1227/Oz levels.
Strong dollar weighs
Hawkish comments from the Fed officials and the resulting strength in the US dollar is weighing over the metal. Furthermore, the metal failed to strengthen despite flurry of good news since last week – dovish Fed, rise in safe haven demand due to Brussels terror attacks – indicating a loss of buying interest in the metal.
Dollar index currently trades with 0.30% gains, while the metal is down 1.5% on the day around $1230 levels. The US new homes sales data may not receive much attention from the metal traders as they are likely to remain focused on the USD index.
Gold Technical Levels
The immediate support is seen at $1227 (23.6% of Dec low-Mar high), under which prices could test $1211.41 (Feb 26 low) then $1200 (zero figure). Conversely, break above $1240 (Monday’s low) would expose hurdle at $1249.50 (daily high) and $1263 (monthly 100-MA).
Strong dollar weighs
Hawkish comments from the Fed officials and the resulting strength in the US dollar is weighing over the metal. Furthermore, the metal failed to strengthen despite flurry of good news since last week – dovish Fed, rise in safe haven demand due to Brussels terror attacks – indicating a loss of buying interest in the metal.
Dollar index currently trades with 0.30% gains, while the metal is down 1.5% on the day around $1230 levels. The US new homes sales data may not receive much attention from the metal traders as they are likely to remain focused on the USD index.
Gold Technical Levels
The immediate support is seen at $1227 (23.6% of Dec low-Mar high), under which prices could test $1211.41 (Feb 26 low) then $1200 (zero figure). Conversely, break above $1240 (Monday’s low) would expose hurdle at $1249.50 (daily high) and $1263 (monthly 100-MA).