Gold prices hanging in there, testing the 1300 psychological level
Gold is currently trading at 1298 within a range of between $1,292 and 1$,299.
Gold has firmed in recent days, supported at 1280 and taking up the bid as the dollar unwinds. The DXY has started to stablise but remains on the backfoot while below 97.50 and gold is finding a base above critical bearish territory.
"We continue to expect gold to perform with new bids in the cards for the yellow metal, and suspect that the yellow metal will continue to have an asymmetric reaction to the upside on any macro disappointments."
"The weaker USD failed to ignite investor appetite in the precious metals sector, with gold prices falling below USD1,300/oz. Instead, safe-haven appeal diminished as talk of a trade deal between the US and China emerged. The Trump administration rebuffed reports that prospects for a deal were weakening, with economic advisor, Larry Kudlow, saying they are making great progress and that a pact may be signed in March or April. Investors have been slowly reducing their exposure in recent weeks, with "gold backed ETF holdings down for the fifth straight week as of Friday," analysts at ANZ explained
Gold levels
Gold prices remain robust above the 1275 target as a line of defence for the bulls. However, while below the 61.8% Fibo of the 2018 swing highs and lows at 1287, the focus remains on a test down towards 1250, a key confluence area made up of Fibos and prior support.resistance. On the upside, mind you, 1315 is the next key target that meets the trend line prior support of the rising channel.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
