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Gold trades below 100-DMA, strong USD weighs

FXStreet (Mumbai) - Gold prices erased part of their gains as the strong US dollar weighed. The metal now trades well below the 100-DMA located at USD 1213.86 levels.

Gold: stuck between 5-DMA and 10-DMA

Prices are now stuck between the 5-DMA and the 10-DMA located at USD 1204.72 and USD 1208.75 levels respectively. The metal fell from a high of USD 1219.9, tracking a rise in the US dollar across the board post the release of an upbeat US durable goods data. Moreover, the drop in the US CPI and the rise in the weekly jobless claims were ignored by the markets. The 10-year yield rose sharply to 1.99% following a strong durable goods orders data, pushing the USD index higher to 95.22 levels; up 1.225 for the day.

Gold Technical Levels

The metal currently trades at USD 1208/Oz levels; up 0.58% for the day. The immediate support is seen at 1204.72 (5-DMA), under which it could fall to 1198.9. On the flip side, resistance is seen at 1213.86 (100-DMA) and 1219.6 levels.

EUR/USD hits 1-month low

EUR/USD plummeted at the beginning of the New York session as strong durable goods orders and core CPI figures in the US triggered a dollar rally across the board.
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