FXStreet (Mumbai) – Gold prices halted its minor recovery and turned back in the negative territory, as the bullion remains stuck between increased Dec Fed rate hike bets and the recent streak of poor US fundamentals.
Gold recovers from $ 1144 lows
Currently, gold trades muted at 1147, retreating slightly from fresh three-week lows struck at 1144.40 in early Asia. Gold tries to recover losses amid broad based US dollar weakness on the back of falling treasury yields.
However, the recovery remains short-lived as the unchanged monetary policy decision by the BOJ dented the sentiment around the gold traders. Markets expected another round of easing by BOJ, which would lead to currency debasement and therefore benefit the bullion.
Markets now look forward to a data-heavy EUR and the US calendar for further momentum on the gold prices. While sentiment on the European stocks will be also closely tracked.
Gold Technical Levels
The metal has an immediate resistance at 1150 (psychological levels) and 1155.90 (Sept 24 High). Meanwhile, support stands at 1144.40 (Today’s Low) below which doors could open for 1138.70 (Oct 8 Low).
(Market News Provided by FXstreet)