Gold price trims losses as European stocks drop

Mumbai-India (Jan 28)  The safe haven demand for Gold rose as the major equity markets across Europe fell into losses.

Back above 50% Fibo level

The metal recovered from the low of USD 1117.19 and now sits above 1118.85 (23.6% of Oct high-Dec low). The rally in oil ensured the major European stocks did not suffer heavy losses in the early session. However, stocks eventually dipped and the Stoxx 50 index now trades 1.5% lower.

Consequently, the metal price improved to USD 1120-1121/Oz levels. The immediate focus now is on the corporate spending figure in the US as represented by the durable goods order figure. The flat action in the USD index is offering no clues to the metal.

Gold Technical Levels

The immediate resistance is seen at 1128.12 (previous day’s high), above which the prices could rise to 1136 (61.8% of Oct high-Dec low). On the other hand, a break below 1113.15 (Jan 8 high) would shift risk in favor of a drop to 50-DMA at 1105.22.

Source: FXstreet