Gold gains 1% on risk aversion

By FXStreet FXStreet (Mumbai) – Gold prices advanced on 1% as the risk aversion in the Asian equities triggered a flight to safety.

Gold nears hourly 50-MA

Prices are within a touching distance from the hourly 50-MA seen at 1085.83/Oz levels. The metal had dipped to a low of 1071.40 after the US stocks showed signs of stability on Thursday. However, the Asian markets turned lower today and helped the yellow metal recover to a session high of USD 1085.07 in early Europe today.

Ahead in the day, the metal could continue to track the movement in the equity markets. The US advance retail sales data may influence Fed March rate hike bets and affect the metal as well.

Gold Technical Levels

At USD 1084/Oz, the immediate resistance is seen at 1085.83 (hourly 50-MA). A break higher would expose 1089.71 (hourly 100-MA). On the other hand, a break below 1080 (23.6% of Oct high-Dec low) could push the metal back to 1071.40 (previous day’s low).
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Source:: FX Street