Gold resilient to USD strength in Europe

By FXStreet FXStreet (Mumbai) – Gold prices managed to stay resilient to the strength in the USD index seen largely due to a drop in the EUR/USD pair.

Hovers around hourly 200-MA

Prices continue to trade just below the hourly 200-MA located at USD 1082.57/Oz levels. The USD index strengthened mainly due to a sudden drop in the EUR/USD pair after the ECB’s Draghi stressed on doing more in order to battle slowing economy and low inflation.

The metal could continue to track the movement in the USD index as the economic calendar in the US is empty. Profit taking on gold shorts could gather pace ahead of the weekend.

Gold Technical Levels

The immediate support is seen at 1078.25 (hourly 50-MA), under which the losses could be extended to 1069.55 (previous day’s low). On the higher side, resistance is seen at 1082.57 (hourly 200-MA+5-DMA), above which the doors are opened for a re-test of 1087.51 (previous day’s high).
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Source:: FX Street