Gold price drops to 50-DayMovingAverage
London (Apr 24) Gold prices fell to 50-DMA located at USD 1190.89/Oz on Friday on hopes that the Eurogroup meeting will will ease the threat of a default in Athens.
Safe haven assets decline
Gold, along with other major safe haven assets like the German Bunds and US Treasuries, fell on speculation that Greece could get an extension of the deadline at the Eurogroup meeting today. Even the weakness in the US dollar index failed to support the yellow metal, which fell from the high of USD 1196/Oz.
The metal now awaits the Eurogroup officials to disclose the decision taken at the just concluded Eurogroup meeting.
Gold Technical Levels
The metal currently trades at USD 1191.7/Oz. The immediate resistance is seen at 1194.5 (5-DMA), above which gains could be extended to 1198.05 (10-DMA). On the flip side, a break below 1190.89 (50-DMA) could drive the metal lower to 1183.7 (Apr. 14 low).