The RBI surprise rate cut hit the gold at yesterday's session. The bank's rate was adjusted by 25 basis points from 8.75 per cent to 8.50 per cent with effect from March 04, 2015. Moreover, the positive US data affected the metal price at sub $1,200.00. It raises hopes that the US Federal Reserve will raise the benchmark interest rate. Today, traders eye US unemployment data and ECB road map to its QE. Ahead of the ECB meeting, the metal price is trading higher at the Asian session. The price is hovering around $1,200.00 for 9 days. This week, US nonfarm pay roll is due on Friday, which will influence the Federal Reserve thinking about an interest rate hike. Until prices close below $1,214.00, bears have the upper hand. The intraday support is found at $1,195.00 and resistance is seen at $1,204.50 and $1,209.00. The weekly resistance is set between $1,223.00 and $1,228.00. The near-term bottom was placed at $1,190.00. A daily close below $1,185.00 leads to $1,179.00, $1,170.00, $1,167.00, and $1,150.00. We recommend fresh selling below $1,195.00 with targets at $1,190 and $1,185.00. We can expect intraday strong momentum only above $1,208.00 towards the levels of $1,211.00 , $1,214.00, $1,216.00, $1,220.00 and $1,222.00. Today, the metal opened on a bullish note.
Resistance: $1,204.00, $1,209.00, $1,214.00.
Support: $1,200.00, $1,195.00, $1,190.00.
Trade: selling below $1,195.00.
Strong upswing momentum is only above $1,209.00. Until the price closes above $1,195.00, bulls are trying to hit $1,222.00 again.
The material has been provided by InstaForex Company - www.instaforex.com