Gold attempting to rise above 50-DMA

London (Jan 25)  Gold prices are having a tough time extending gains over and above the 50-DMA located at USD 1105 levels as relatively calm markets zap safe haven demand for the metal.

Hovers at three-day high

The metal currently trades around USD 1106; its three-day high. Prices are on the verge of a upside breakout as oil prices are down 2%. However, the European equities have remained relatively calm; ensuring the safe haven demand for the metal is restricted.

Meanwhile, the USD index is trading largely flat around 99.50 levels, there by offering no clues to the yellow metal traders.

Gold Technical Levels

Prices remain around the 50-DMA at 1105/Oz levels. A convincing break above the 50-DMA would expose 1109.70 (Jan 20 high). A break above would see prices rise to 1113.15 (Jan 8 high). On the other hand, a break below 1100 could see the prices drop to 1092.45 (Jan 21 low), under which the losing streak could be extended to 1082.51 (Jan 19 low).

Source: FXstreet