- Gold fell below $1,200 on Monday despite turmoil in Turkey.
- The yellow metal continues to lose the safe haven appeal
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
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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)
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