FXStreet (Mumbai) – Gold dropped in Asia and extended losses in Europe, snapping the three-day winning streak.
Hovers around 50% Fibo level
The metal currently trades around USD 1118.85 (50% of Oct high-Dec low). Prices rose on Wednesday after the Fed statement took a note of the strong USD and its impact on the exports and inflation (disinflationary impact).
The safe haven appeal also came into play in the last three trading session as oil and equities witnessed schizophrenic moves. The drop seen today appears largely technical in nature. Ahead in the day, oil price action and US durable goods figure could influence the metal.
Gold Technical Levels
The immediate resistance is seen at 1128.12 (previous day’s high), above which the prices could rise to 1136 (61.8% of Oct high-Dec low). On the other hand, a break below 1113.15 (Jan 8 high) would shift risk in favor of a drop to 50-DMA at 1105.22.
(Market News Provided by FXstreet)