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

Omkar Godbole FXStreet Contributor

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)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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