FXStreet (Mumbai) – Gold prices on Comex extends its downside bias for the third straight session and remains under constant bearish pressure as the latest set of upbeat macro data bolstered the case for a Sept Fed rate-hike further, dragging non-interest bearing bullion lower.
Gold eyes 1073.70
Currently, gold trades -0.41% lower at 1084.20, hovering close to lows printed at 1083.50. Gold remains weak amid a new set of important macro updates from the US, while the Fed’s echo and the strong greenback created additional bearish pressure on the precious metal’s prices.
Citigroup strategist David Wilson noted on Thursday, “The Fed yesterday gave a stronger hint of a sooner-rather-than-later rate hike and the dollar strengthened and that impacts all the commodities. As the focus is back on the dollar and its strength, the trajectory for gold is down until a hike actually happens.”
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades -0.08% lower at 97. A weaker greenback makes dollar-priced in gold cheaper to holders on other currencies and vice-versa.
While holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund, were unchanged at 21.87 million ounces for on Wednesday – the lowest level since September 2008.
Gold Technical Levels
The metal has an immediate resistance at 1090 and 1098 levels. Meanwhile, support stands at 1081 below which doors could open for 1073 levels.
(Market News Provided by FXstreet)