Gold Review: Yellow metal closed below $1,200 for the first time since March 14, 2017
|- Gold fell below $1,200 on Monday despite turmoil in Turkey.
- The yellow metal continues to lose the safe haven appeal
Gold closed below $1,200 on Monday for the first time March 14, 2017, despite risk aversion in the financial markets.
The global equities and EM currencies took a beating on Monday as Turkey's national currency, lira, fell to a new record low against the greenback after the tensions with Washington escalated over the weekend.
Still, the yellow metal - a traditional safe haven asset - failed to pick up a bid and fell 1.48 percent to $1,193. It appears the investors no longer consider the yellow metal as a safe haven asset. This is evident from the fact that it has lost more than 12.5 percent in the four months despite escalating US-China trade war.
As of writing, gold is trading at $1,195, representing marginal gains on the day. The bullish divergence of the stochatic seen in the hourly chart indicates scope for a move above $1,200.
Hourly chart
Resistance: $1,200 (psychological level), $1,205 (5-day MA), $1,208 (10-day MA)
Support: $1,191.8 (previous day's low), $1,180 (June 2013 low), $1,174 (78.6 percent Fibonacci retracement of the rally from Dec 2016 low to Jan 2018 low)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.