Gold retakes 1-hr 50-MA as USD rally stalls

Gold jumped above the hourly 50-MA level of $1190 levels as the Dollar Index is having a tough time holding above 100.00 levels despite the upward revision of the US Q3 GDP data.

Eyes OPEC decision ahead US data

The OPEC decision is due today and the stakes are high. A failure to reach a deal could rock the oil markets and trigger a broad based risk aversion that could force investors to pump money into the oversold gold and other safe haven assets.

Later in the day, US ADP report for November and the personal spending report for October are due for release. The data could turn out to be a non-event like the yesterday’s Us GDP release, given the markets have already prepared the ground for a strong growth during the Trump Presidency.

Gold Technical Levels

The metal was last seen trading around $1193/Oz. A break above the psychological level of $1200 would open doors for $1210.85 (50% of Dec 2015 low – 2016 high). The next major hurdle is seen at $1224 (Apr 14 low).

On the lower side, failure to hold above the hourly 50-MA level of $1190 would shift risk in favor of a drop to $1180.70 (previous day’s low) and $1171.07 (Nov 25 low).