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10 Dec 2014
Gold strengthens ahead of the European session
FXStreet (Mumbai) - Gold prices advanced ahead of the European session after hitting a six-week high yesterday on the back of a weak US dollar and rise in safe haven demand due to turmoil in Greek markets on election fears.
Gold traded at 0.34% higher at USD 1236.00/Oz levels at the time of writing, compared to the previous session’s close of USD 1232/Oz levels. The metal gained today, despite the Chinese November CPI inflation, printing at 1.4%, which is lower than the expected print of 1.6%. Moreover, the mixed action in the Asian equity markets capped gains in the Gold prices earlier today. Major Asian indices like Shanghai Composite, Nikkei and Hang Seng are trading in the red.
However, the yellow metal may extend gains as we head into the European opening bell, since the major European index futures like the DAX, CAC and the Ftse are pointing to a nervous start to the trading session. The Eurozone periphery index futures are trading down by more than 1% each.
Gold Technical Levels
The metal has an immediate resistance located at 1239, above which gains could be extended to 1250.00 levels. Meanwhile, support is seen at 1234 (5-DMA) and 1211 (50-DMA).
Gold traded at 0.34% higher at USD 1236.00/Oz levels at the time of writing, compared to the previous session’s close of USD 1232/Oz levels. The metal gained today, despite the Chinese November CPI inflation, printing at 1.4%, which is lower than the expected print of 1.6%. Moreover, the mixed action in the Asian equity markets capped gains in the Gold prices earlier today. Major Asian indices like Shanghai Composite, Nikkei and Hang Seng are trading in the red.
However, the yellow metal may extend gains as we head into the European opening bell, since the major European index futures like the DAX, CAC and the Ftse are pointing to a nervous start to the trading session. The Eurozone periphery index futures are trading down by more than 1% each.
Gold Technical Levels
The metal has an immediate resistance located at 1239, above which gains could be extended to 1250.00 levels. Meanwhile, support is seen at 1234 (5-DMA) and 1211 (50-DMA).