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26 Feb 2015
Gold hovers near USD 1210/Oz
FXStreet (Mumbai) - Gold prices trade around USD 1210/Oz levels, unable to extend the rally seen in the Asian session.
Gold: Could Chinese demand push the metal higher?
The metal rallied in the Asian session as Chinese investors returned to the markets after a week long Lunar year holiday. Being the second largest consumers of Gold in the world, analysts expect a rise in demand, especially on account of a correction in the US dollar. However, the USD has not really seen a notable correction as markets believe the Fed rate hike is still due in 2015; if not in June. Thus, it remains to be seen whether Chinese demand is strong enough to push the metal considerably higher from the current level of USD 1210.
Gold Technical Levels
The immediate resistance is seen at 1213.89 (100-MA), above which gains could be extended to 1219.6. On the flip side, support is seen at 1205.24 (5-DMA) and 1198.9 levels.
Gold: Could Chinese demand push the metal higher?
The metal rallied in the Asian session as Chinese investors returned to the markets after a week long Lunar year holiday. Being the second largest consumers of Gold in the world, analysts expect a rise in demand, especially on account of a correction in the US dollar. However, the USD has not really seen a notable correction as markets believe the Fed rate hike is still due in 2015; if not in June. Thus, it remains to be seen whether Chinese demand is strong enough to push the metal considerably higher from the current level of USD 1210.
Gold Technical Levels
The immediate resistance is seen at 1213.89 (100-MA), above which gains could be extended to 1219.6. On the flip side, support is seen at 1205.24 (5-DMA) and 1198.9 levels.