Gold price slides to near 10-DMA support

March 9, 2016

London (Mar 9)  Prices failed to take out hourly 50-MA stationed at $1265 levels earlier today before the risk driven sell-off began. The metal is now eyeing the hourly 200-MA located at $1248.46 levels. The European equities rallied on hopes of big ECB bazooka tomorrow. Consequently, haven demand dropped.

Furthermore, drop in the EUR pushed the USD index higher by about 0.20%, which further weighed over metal. The metal currently trades around $1253/Oz levels.

Gold Technical levels

The immediate hurdle is seen at $1265 (hourly 50-MA), above which prices could target $1279.84 (Mar 4 high). On the other hand, a break below $1248.46 (hourly 200-MA) would open doors for a slide to $1219.89 (Feb 29 low).

Source: FXstreet

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