FXStreet (Mumbai) – Gold prices recovered losses to trade moderately higher around USD 1170/Oz after Draghi hinted at more QE, but struggle to extend gains further on account of a broad based USD rally.
Gains capped by strong USD
The metal recovered losses as prices received support from the rally in Gold/EUR pair. However, upside remains capped on account of a 1% rise in the USD index following Draghi’s ultra dovish remarks at the ECB press conference.
Meanwhile, stock markets across the European and in the US rallied on hopes of more QE from the ECB in December. At the time of writing, the DJIA was up more than 1%.
Gold Technical Levels
At USD 1170/Oz, the immediate resistance is seen at 1172.91 (hourly 200-MA), above which the prices could rise to 1175.13 (200-DMA). Above the same, the doors would be opened for a rally to 1191.53 (Oct 15 high). On the other side, support is seen at 1161.69 (daily low) and 1156.70 (Sep 24 high). A break below the same would expose 100-DMA at 1140.56.
(Market News Provided by FXstreet)