Gold extends bearish move, drops below key Fibo level

By FXStreet Gold extended losses in Europe to trade below 1212 (23.6% of Dec low-Feb high) on the back of rise in the USD index and European equity futures.

Drops to $1205

Metal hit a session low of USD 1205, before recovering slightly to trade around USD 1208 levels. The sell-off in Gold began in Asia on account of the rise in the Asian equities. Losses were extended further in Europe due to a 0.45% rise in the USD index and a more than 1% rally in the Euro Stoxx 50 index.

The yellow metal remains at the mercy of the equity market sentiment. US manufacturing data may get little attention from the markets if oil prices extend gains and pushup US equities.

Gold Technical Levels

The immediate hurdle is seen at 1215 (hourly 50-MA) ahead of the major resistance at 1240 (previous day’s high). On the other hand, a breakdown of immediate support at 1200 could see prices trickle down to 1190 (Feb 16 low).
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Source:: FX Street