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21 May 2015
Gold drops below 200-DMA
FXStreet (Mumbai) - The strong weekly labor market indicator print in the US pushed the yellow metal well below its 200-DMA located at USD 1207.28/Oz levels.
Gold weakens as key US labor market gauge strengthens
In an immediate reaction, the metal fell to an intraday low of USD 1201.4/Oz after the labor department data in the US showed the four-week average of claims, which provides a more accurate picture of the labor market strength, decreased to 266,250, lowest since April 15, 2000, in the period ended May 16 from 271,750.
However, we did not see a significant appreciation in the USD index, which recovered very moderately to trade at 95.34; still down 0.32% for the day. Consequently, gold recovered slightly to trade at USD 1205.1/Oz.
Gold Technical Levels
The immediate support is seen at 1203, under which the metal could drop to its psychological support level of 1200. On the other hand, a break above 1211.02 (10-DMA) could drive the prices higher to 1215.1 (Apr. 28 high).
Gold weakens as key US labor market gauge strengthens
In an immediate reaction, the metal fell to an intraday low of USD 1201.4/Oz after the labor department data in the US showed the four-week average of claims, which provides a more accurate picture of the labor market strength, decreased to 266,250, lowest since April 15, 2000, in the period ended May 16 from 271,750.
However, we did not see a significant appreciation in the USD index, which recovered very moderately to trade at 95.34; still down 0.32% for the day. Consequently, gold recovered slightly to trade at USD 1205.1/Oz.
Gold Technical Levels
The immediate support is seen at 1203, under which the metal could drop to its psychological support level of 1200. On the other hand, a break above 1211.02 (10-DMA) could drive the prices higher to 1215.1 (Apr. 28 high).