Gold price surrenders gains despite weakness in USD index

London (Nov 19)  Gold prices erased gains slow and steady throughout the European session to trade lower on the day despite the weakness in the USD index. Drops below hourly 50-MA

Prices fell below the hourly 50-MA at USD 1071.87 ahead of the weekly US jobless claims data. The USD index stays more than 0.20% lower around 99.45 levels, despite which the metal failed to maintain gains.

The metal clocked a high of USD 1078.10 on broad based USD selling in Asia, before the gains in the Asian and European stocks began weighing on the metal.

Gold Technical Levels

A failure to rise above 1071.87 (hourly 50-MA) could send the prices lower to 1063.27 (previous day’s low). On the other hand, a rise above 1071.87 would open doors for a re-test the daily high of 1078.10.

Source: FXstreet