FXStreet (Mumbai) – Gold price on Comex failed to retain gains driven by China stocks sell-off and loses its safe-haven status as a Sept Fed rate lift-off still looms, making investors wary of the non-interest bearing commodity.
Gold stuck around $ 1130
Currently, gold trades -0.06% lower at 1133.3, having posted a high at 1134.70 and a low at 1128.70. The recovery in the yellow metal remained short-lived and the prices fell back in the red zone as investors began weighing possibility of US rate hike in September following the Jackson Hole symposium over the weekend.
Fed Vice Chairman Stanley Fischer’s commented during Friday’s session of the central bank’s conference in Jackson Hole that the Chinese economic slowdown, a inflation decrease and market expectations were only temporary, and that a September rate increase is still very likely.
Meanwhile, the US dollar index, a virtual gauge of greenback’s relative strength, recovered partial losses and now trades at 96, recoding a -0.16% loss on the day.
Gold Technical Levels
The metal has an immediate resistance at 1140 and 1146 levels. Meanwhile, support stands at 1128.70 (Today’s Low) below which doors could open for 1123.10 (Aug 28 Low) levels.
(Market News Provided by FXstreet)