Gold gains 3%, rises above 100-DMA
New York (Dec 9) The yellow metal continues to rise higher as the decline in the US stocks increased safe haven appeal of Gold.
Gold now trades 3.00% higher at USD 1231.10/Oz, rising above the key technical resistances on its way up. The US stock markets are trading in the red with the DJIA down 0.91% at 17,689.50 levels, while the S&P 500 is down 0.92% at 2041.50 levels. The NASDAQ and the mid-cap Russell 2000 index declined 1..12% and 0.72% respectively.
Moreover, the uncertainty in the markets, that supports Gold prices, is evident from the S&P 500 VIX futures, which have gained 6.5% to trade at 15.58 levels. Meanwhile, an almost 1% fall in the US dollar index to 88.36 levels is also encouraging investors to embrace the yellow metal.
Gold Technical Levels
The index has an immediate resistance located at 1237 (Sep 23 high), above which gains could be extended to 1250 levels. Meanwhile,the 100-DMA located at 1223.50 is likely to act as an immediate support, followed by the 50-DMA located at 1199.35 levels.