Gold surrenders gains as USD index ticked higher

By FXStreet FXStreet (Mumbai) – Gold prices erased gains to trade with marginal losses at USD 1089/Oz levels as the USD index strengthened 0.20%.

Rejected at $1093

The metal turned lower from the Asian session high of USD 1093. The greenback bounced-off its 50-DMA on Friday as broad based risk aversion triggered a flight to safety. The metal was up more than $20 in the NY session on Friday before trimming gains to close at USD 1088.72/Oz levels.

Ahead in the day, the metal could continue to track the movement in the equities and the USD index.

Gold Technical Levels

The immediate resistance is seen at 1095.57 (Jan 13 high), which if taken out shall open doors for 1100 levels. On the other side, a break below 1085.74 (hourly 50-MA) could see the pair re-test 50-DMA at 1075.52.
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Source:: FX Street