Gold futures on Comex brought an end to its corrective mode and resumed last week’s rally as risk-aversion heightened this session amid falling oil and stocks.
Gold rises nearly $12 post-European open
Currently, gold jumps 1.63% to fresh multi-month highs at 1176.80 last minutes. The demand for the safe-haven gold was on the rise during the European session as investors’ confidence was once again rattled by the renewed sell-off seen in the oil prices, which also weighed heavily on the European equities. Both oil benchmarks are down over -2%, while the European indices are also heavily sold, over -2.5%.
Moreover, markets are speculating a Fed rate hike directly at its Dec meeting, which further added strength to the gold’s rally. Meanwhile, the US dollar index trades modestly flat at 96.95.
In the day ahead, the broader market sentiment will continue to drive the yellow metal as the macro calendar remains light today. While attention remains on Wednesday’s Fed Chair Yellen’s testimony on the Semi-annual Monetary Policy Report before the Senate Banking Committee.
Gold Technical Levels
The metal has an immediate resistance at 1180 (Oct levels) and 1185 (round number). Meanwhile, the support stands at 1160 (round number/ 5-DMA) below which doors could open for 1155.
(Market News Provided by FXstreet)
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