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17 Apr 2015
Gold pares gains
FXStreet (Mumbai) - Gold prices fell from USD 1207.7/OZ to trade at USD 1202.4/Oz as the US dollar strengthened on a slight uptick in the core inflation number in March.
Losses capped by Greek issue
The metal came under pressure as the USD index recovered from the low of 97.18 to a hit a session high of 98.03 after the data in the US showed Core CPI rose 1.8% in March year-on-year, compared to the 1.7% consensus estimate.
However, losses in the metal have been restricted around USD 1202 as investors remain focused on the Greek issue. Greece financing is on the stake subject to the approval of number of negotiations next week. The markets are already concerned about the threat of a possible Greek default if it fails to receive payment before May 1st. Consequently, the safe haven assets have remained well supported.
Gold Technical Levels
The immediate resistance is seen at 127.7, above which gains could be extended to 1213.61 (200-DMA). On the flip side, a break below the daily low of 1197.3 could drive the prices lower to its 50-DMA at 1191.80.
Losses capped by Greek issue
The metal came under pressure as the USD index recovered from the low of 97.18 to a hit a session high of 98.03 after the data in the US showed Core CPI rose 1.8% in March year-on-year, compared to the 1.7% consensus estimate.
However, losses in the metal have been restricted around USD 1202 as investors remain focused on the Greek issue. Greece financing is on the stake subject to the approval of number of negotiations next week. The markets are already concerned about the threat of a possible Greek default if it fails to receive payment before May 1st. Consequently, the safe haven assets have remained well supported.
Gold Technical Levels
The immediate resistance is seen at 127.7, above which gains could be extended to 1213.61 (200-DMA). On the flip side, a break below the daily low of 1197.3 could drive the prices lower to its 50-DMA at 1191.80.