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19 May 2015
Gold stuck between strong USD and accelerated QE
FXStreet (Mumbai) - Gold prices recovered from the session low of USD 1217.1/Oz levels after the ECB member indicated at accelerated purchases under QE in May and June. However, the strong dollar is capping recovery around USD 1222 levels.
Trades below 5-DMA
The metal is having a tough time in breaching and sustaining above the 5-DMA level currently located at USD 1223.08/Oz. The losses were recovered after the ECB member Coeure said the bank would front-load or increase its monthly purchases (above EUR 60 billion) in May, June due to seasonal reasons.
However, the gains are being capped as the USD index strengthened to a high of 95.12, before inching slightly lower at 94.97. Consequently, the yellow metal is struggling to extend the recovery. Ahead in the day, the US housing data could influence the metal.
Gold Technical Levels
The immediate resistance is seen at the daily high of USD 1224.6, above which gains could be extended to 1227.1 (May 14 high) and 1232.3 (previous session’s high). On the other hand, a break below the daily low of 1217.1 could push the prices lower to 1207.39 (200-DMA).
Trades below 5-DMA
The metal is having a tough time in breaching and sustaining above the 5-DMA level currently located at USD 1223.08/Oz. The losses were recovered after the ECB member Coeure said the bank would front-load or increase its monthly purchases (above EUR 60 billion) in May, June due to seasonal reasons.
However, the gains are being capped as the USD index strengthened to a high of 95.12, before inching slightly lower at 94.97. Consequently, the yellow metal is struggling to extend the recovery. Ahead in the day, the US housing data could influence the metal.
Gold Technical Levels
The immediate resistance is seen at the daily high of USD 1224.6, above which gains could be extended to 1227.1 (May 14 high) and 1232.3 (previous session’s high). On the other hand, a break below the daily low of 1217.1 could push the prices lower to 1207.39 (200-DMA).