Gold rallies to $ 1220, strongest since May 2015

11 February, 2016

Gold futures on Comex bounced-off the strong support zone near $ 1205 levels and flew through the roof over the last hours, to reach the highest levels since May 2015.

Gold eyes Oct highs at 1228.10

Currently, gold jumps 1.88% to 1216.80, easing-off fresh nine-month highs posted at 1220.20. The bullion regained poise and flew through the roof alongside other safe-havens as an era of negative interest rates appear to have dawned across the financial markets, spooking investors big time as they scramble for returns on their investments and also to protect them. 
Gold yields zero interest but, it’s not negative-interest bearing and therefore, remains underpinned.

The yields on the US treasuries, particularly the 10-year yields, dropped to the lowest since May 2013, down over 5%. Amidst market turmoil, the safe-haven gold remains heavily bid and emerged the winner among other safety bets such as the yen, CHF and euro.

Gold Technical Levels

The metal has an immediate resistance at 1220.20 (daily high) and 1228.10 (May 2015 High). Meanwhile, the support stands at 1200 (psychological levels) below which doors could open for 1195.72 (5-DMA).


Source link  
Dollar rebounds from multi-month lows

The greenback selling pressure seems to have abated for the time being, with the key US Dollar Index (DXY) bouncing off 9-month lows...

EUR/GBP jumps to fresh yearly tops

The EUR/GBP cross was seen building on previous session's strong up-move and has now jumped to fresh yearly tops near 0.8875...

USD: Fed being a little more hawkish

The dollar picked up over the past week, and this continued to be in reaction to a Fed that is being a little more hawkish...


EUR sluggish in recent weeks

EUR has also been surprisingly soft in light of the convincing win by French President Macron...

EUR/USD sinks to session lows

The single currency is now losing the grip vs. the buck, sending EUR/USD to test the area of daily lows in the 1.1240/30. Spot met extra downside pressure...

Euro is consolidating below the 1.1300

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair still points to some consolidation...


Dollar Index rebound looks plausible

In view of the analysts at Societe Generale, the Dollar Index correction appears to have come...

Oil closed strongly

Oil prices rallied after the EIA weekly report showed gasoline inventories declined the most at this time of the year for at least five years. Stocks dropped 3.26 million barrels to 238.2 million barrels. The market was also buoyed by a fall in US oil production, down 55kb/d to 8.46mb/d last week...

Gold hovering around 3-week high

Gold on Wednesday traded in a narrow band but maintained its bid tone and is hovering around 3-week high level touched on Tuesday to currently trade around $1364 region...

  


Share: