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16 Sep 2015
Gold gains as USD index erases gains
FXStreet (Mumbai) - Gold prices spiked to a session high of USD 1113.50/Oz levels as the USD index gave up gains after the release of the negative CPI figure in the US.
Hovers around 50-DMA
The metal currently trades around its 50-DMA located at USD 1112.87 levels. The stagnant core CPI and the negative headline led to a sell-off in the USD across the board. The USD index turned lower from the pre-data level of 95.90 to trade around 95.66; down 0.11% on the day.
Consequently, the metal strengthened from the pre-data level of USD 1106/Oz to trade around its 50-DMA at USD 1112.87/Oz levels. With no major data due for release now, the metal could continue to track the movement in the USD index and the two-year treasury yield.
Gold Technical Levels
The immediate resistance is located at 1113.50 (Sep 10 high), above which gains could be extended to 1123.50 (Sep 9 high). On the other side, support is located at 1102.10 (Sep 9 low) and 1098.20 (Sep 11 low).
Hovers around 50-DMA
The metal currently trades around its 50-DMA located at USD 1112.87 levels. The stagnant core CPI and the negative headline led to a sell-off in the USD across the board. The USD index turned lower from the pre-data level of 95.90 to trade around 95.66; down 0.11% on the day.
Consequently, the metal strengthened from the pre-data level of USD 1106/Oz to trade around its 50-DMA at USD 1112.87/Oz levels. With no major data due for release now, the metal could continue to track the movement in the USD index and the two-year treasury yield.
Gold Technical Levels
The immediate resistance is located at 1113.50 (Sep 10 high), above which gains could be extended to 1123.50 (Sep 9 high). On the other side, support is located at 1102.10 (Sep 9 low) and 1098.20 (Sep 11 low).