Gold falls below 50% Fibo level

Mumbai-India (Mar 2)  Gold prices erased part of their gains to trade below the 50% retracement located at USD 1219.5/Oz levels.

Gold: will it fall below 100-DMA?

The metal has declined from the high of USD 1223.1/Oz levels to trade currently at USD 1216.9/Oz levels. The interest rate cut in China provided a temporary boost to the prices. However, the upbeat manufacturing reports across the Eurozone and the positive action in the European equity futures weighed over the metal. Meanwhile, a lackluster USD index fails to provide clear clues to the metal.

The metal may drop below the 100-DMA located at USD 1215.46/Oz levels if the US equity markets begin the week on a positive note. On the other hand, strength in the USD and/or risk aversion in the equities could help the metal sustain above 100-DMA.

Gold Technical Levels

The metal currently trades 0.33% higher at USD 1217.20/Oz levels. The immediate resistance is located at 1219.5, above which prices could re-test the daily high of 1223.1. On the flip side, support is seen at 1215.46, under which losses could be extended to 1211.76 (5-DMA).

Source: FXstreet