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25 Feb 2015
Gold stuck between 5-DMA and 10-DMA
FXStreet (Mumbai) - Gold prices trade between the 5-DMA and the 10-DMA located at USD 1203.88 and USD 1211.16 levels ahead of the second day of the Fed Chairwoman Janet Yellen’s testimony to the financial services committee. The metal shall also take cues from ECB President Draghi’s testimony to the European parliament.
Gold: Will it break the range?
The metal could see a break below USD 1203.88 if Yellen talks up the US dollar, while ECB’s Draghi sounds upbeat on the Eurozone economy. So far today, weakness in the US Treasury yields has supported the yellow metal.
On the other hand, further dovish talk by Fed chief could push the US dollar well above USD 1211.16 levels. In the meantime, the markets are likely to ignore the New Home Sales data due for release later today in the US.
Gold Technical Levels
The immediate resistance is seen at 1213.48 (100-DMA), above which gains could be extended to 1219.6. On the flip side, a break below 1198.9 could see the pair drop to 1190.3 levels.
Gold: Will it break the range?
The metal could see a break below USD 1203.88 if Yellen talks up the US dollar, while ECB’s Draghi sounds upbeat on the Eurozone economy. So far today, weakness in the US Treasury yields has supported the yellow metal.
On the other hand, further dovish talk by Fed chief could push the US dollar well above USD 1211.16 levels. In the meantime, the markets are likely to ignore the New Home Sales data due for release later today in the US.
Gold Technical Levels
The immediate resistance is seen at 1213.48 (100-DMA), above which gains could be extended to 1219.6. On the flip side, a break below 1198.9 could see the pair drop to 1190.3 levels.