Stronger stocks, dollar push down gold to near $1,200
- Gold nursed heavy losses on Tuesday, as strength in the dollar and equities triggered a sell-off in the safe-haven metal and sent it towards the key $1,200 an ounce level.
Spot gold was steady at $1,207.80 an ounce by 0038 GMT, after losing 1.6 percent in the previous session. Bullion fell to a session low of $1,201.63 on Monday, far below the one-year high of $1,260.60 hit earlier this month.
Global stocks rallied on Monday, backed by a rise in oil and commodity prices, while Asian shares rose to a seven-week high early on Tuesday. The dollar rose nearly 1 percent against a basket of major currencies.
Assets in SPDR Gold Trust, the top gold-backed exchange-traded fund, rose 2.64 percent to 752.29 tonnes on Monday, the highest since March 2015. [GOL/ETF]
The 19.33-tonne inflow matches Friday's increase, which was the fund's biggest single-day inflow since August 2011.
- Technically, April gold futures prices are still in a two-month-old uptrend on the daily bar chart and the bulls still have the overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the February spike high of $1,263.90. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,150.00. First resistance is seen at Monday’s high of $1,226.90 and then at Friday’s high of $1,235.30. First support is seen at Monday’s low of $1,202.50 and then at $1,200.00. Wyckoff’s Market Rating: 6.0
Reference: Reuters, Kitco
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