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11 May 2015
China rate cut does nothing for Gold
FXStreet (Mumbai) - Gold prices failed to strengthen even though China announced a rate cut over the weekend, its third in six months.
Gold: Drops below hourly 50-MA
The metal trades below its hourly 50-MA located at USD 1185.45/Oz. China cut lending rates by 25 basis points – from 5.35% to 5.1%. However, the move failed to strengthen the yellow metal on the debasement effect. Similarly, even the other riskier assets failed to strengthen.
Meanwhile, the gains in the USD index could be keeping the metal under pressure as well. Ahead in the day, the pair is likely to continue tracking the broader market sentiment in the absence of a major market moving data out of the Eurozone and the US.
Gold Technical Levels
The immediate support is seen at 1181.6, under which losses could be extended to 1178.6. On the flip side, a break above 1185.45 (hourly 50-MA) could drive the metal higher to its 50-DMA at 1192.11.
Gold: Drops below hourly 50-MA
The metal trades below its hourly 50-MA located at USD 1185.45/Oz. China cut lending rates by 25 basis points – from 5.35% to 5.1%. However, the move failed to strengthen the yellow metal on the debasement effect. Similarly, even the other riskier assets failed to strengthen.
Meanwhile, the gains in the USD index could be keeping the metal under pressure as well. Ahead in the day, the pair is likely to continue tracking the broader market sentiment in the absence of a major market moving data out of the Eurozone and the US.
Gold Technical Levels
The immediate support is seen at 1181.6, under which losses could be extended to 1178.6. On the flip side, a break above 1185.45 (hourly 50-MA) could drive the metal higher to its 50-DMA at 1192.11.