Gold traded lower dipped by 197rs to settled at 28176 as stronger dollar and continued Greek troubles amid extended creditor negotiations.
Reports that Greek officials were working on the final draft of a bailout agreement in front of a meeting between Greek PM and coalition leaders yesterday ignited risk appetite.
However, this meeting was postponed as the PM decided to meet with the troika of the European Commission, the ECB and the IMF to negotiate the terms needed to obtain a second bailout package Greek policy makers have already agreed on cuts equal to 1.5% of the island nation’s gross domestic product.
However, they are yet to agree on how to recapitalize banks, reduce wages and ensure the survival of pension funds.
These delays have reignited fears of a Greek default and euro zone collapse leading to the bearish metal environment.
It is critical that the agreement be approved by Feb15 for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
Now technically market is trading in the range as RSI for 18days is currently indicating 48.2, where as 50DMA is at 28024 and Gold is trading above the same and getting support at 28056 and below could see a test of 27936 level, And resistance is now likely to be seen at 28365, a move above could see prices testing 28554.
Trading Ideas:
Gold trading range for the day is 27936-28554.
Gold traded lower on a stronger dollar and continued Greek troubles amid extended creditor negotiations.
Ben Bernanke vowed to keep interest rates low despite the strong showing in the unemployment figures earlier.
GREECE's PAPADEMOS: Political leaders have agreed on all but one measure needed to secure second bailout package.
Courtesy: Kedia Commodities
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