Gold breaks 200-Day MA at $1270

Gold, H1

Gold dropped to three-week lows of $1,267.16 from near $1,277.00, with the timing of the move reminiscent of other recent spiky moves. No confirmation so far, but the sell order may have been related to the London fix, which comes at 10:00 EST. Dollar strength this morning has been a contributor to gold weakness this morning.

The breach and break of the 200-Day MA, which sufficiently supported the commodity since Early October, consider being a significant key level for Gold, with weakness increasing on the anticipation of US Non-Manufacturing ISM. The price action has been seen slightly up on the release of U.S. trade deficit, which widened 8.6% to -$48.7 bln in October. The larger than expected US Trade Deficit, push gold by nearly $2 up, however ahead of the last US data for today,  Gold weakened by nearly $7, the last hour. U.S. Markit services PMI decline by 0.8 points,  added further sell pressure on Gold.

The next intra-day support areas for Gold come at October’s low  between $1260.00- $1262.00, while the Daily support is set at $1255.00. The RSI is 41 and falling, MACD is slightly below neutral, while the parabolic SAR remains negative since November 29.  Therefore bears seems that they are gaining the control of Gold, while only a reversal over 50-Day MA at 1283-1285.00. would negate this downwards move.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Andria Pichidi

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.