12 Feb 2015
Gold struggles to extend gains despite weak US data
FXStreet (Mumbai) - Gold prices struggle to extend gains despite a fall in the US Treasury yields post a weaker-than-expected US retail sales data and a rise in the weekly initial jobless claims figure.
Gains stuck at USD 1227
The yellow metal faced rejection around USD 1227/Oz levels for the fourth time since the European session. The 10-year treasury yield in the US fell 5.1 basis points from the day’s high of 2.0495 to trade at the current level of 1.99%. However, the yellow metal managed to gain only USD 3/Oz post the release of the disappointing advance retail sales data and the weekly jobless claims data.
Moreover, the strength in the US equity futures may have capped gains in the yellow metal. However, Gold prices could extend gains if the US equities weaken after the opening bell in response to a weak economic data.
Gold Technical Levels
The metal currently trades at USD 1226/Oz levels. The immediate support is seen at 1218.9, under which prices could drop to 1214.72 (100-DMA) levels. Meanwhile, resistance is seen at 1233.78 (50-DMA) and 1244.29 (200-DMA) levels.
Gains stuck at USD 1227
The yellow metal faced rejection around USD 1227/Oz levels for the fourth time since the European session. The 10-year treasury yield in the US fell 5.1 basis points from the day’s high of 2.0495 to trade at the current level of 1.99%. However, the yellow metal managed to gain only USD 3/Oz post the release of the disappointing advance retail sales data and the weekly jobless claims data.
Moreover, the strength in the US equity futures may have capped gains in the yellow metal. However, Gold prices could extend gains if the US equities weaken after the opening bell in response to a weak economic data.
Gold Technical Levels
The metal currently trades at USD 1226/Oz levels. The immediate support is seen at 1218.9, under which prices could drop to 1214.72 (100-DMA) levels. Meanwhile, resistance is seen at 1233.78 (50-DMA) and 1244.29 (200-DMA) levels.