Gold is defending 200-hour MA support amid risk-off in equities

Gold is defending 200-hour MA support amid risk-off in equities

  • Gold is trading in a sideways manner around the 200-hour MA in Asia.
  • Risk-off in equities and a slight drop in the treasury yields is likely helping the yellow metal defend the MA support.

Gold’s bullish move may have lost its mojo in the last few days, beating the 200-hour MA is still proving a tough task for the bears.

The yellow metal fell to its 200-hour moving average (MA) at 13:00 GMT yesterday and has been defending the key support ever since.

A sustained break below the 200-hour MA is remaining elusive, possibly due to risk aversion in the equities. As of writing, the S&P 500 futures are down 0.58 percent. Meanwhile, names like Nikkei, Hang Seng, and Kospi are down at least 1 percent each. The Shanghai Composite is also reporting a 0.5 percent drop.

Notably, risk-off in equities is also pulling down treasury yields. At press time, the 10-year treasury yield is trading at 2.81 percent – down two basis points on the day.  As a result, the greenback – gold’s nemesis – could remain on the defensive against classic safe-haven assets.

Looking forward, a strong bounce from the 200-hour MA of $1,241 could be seen if the risk aversion worsens. On the other hand, acceptance below the MA support could yield a deeper pullback.

Gold Technical Levels

XAU/USD

Overview:
    Today Last Price: 1241.94
    Today Daily change: -1.1e+2 pips
    Today Daily change %: -0.0853%
    Today Daily Open: 1243
Trends:
    Previous Daily SMA20: 1230.71
    Previous Daily SMA50: 1225.93
    Previous Daily SMA100: 1213.27
    Previous Daily SMA200: 1231.52
Levels:
    Previous Daily High: 1246.85
    Previous Daily Low: 1239.8
    Previous Weekly High: 1250.1
    Previous Weekly Low: 1221.39
    Previous Monthly High: 1237.4
    Previous Monthly Low: 1196.4
    Previous Daily Fibonacci 38.2%: 1242.49
    Previous Daily Fibonacci 61.8%: 1244.16
    Previous Daily Pivot Point S1: 1239.58
    Previous Daily Pivot Point S2: 1236.17
    Previous Daily Pivot Point S3: 1232.53
    Previous Daily Pivot Point R1: 1246.63
    Previous Daily Pivot Point R2: 1250.27
    Previous Daily Pivot Point R3: 1253.68

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