FXStreet (Mumbai) – Gold prices clocked a session high of USD 1102.70/Oz on broad based USD sell-off, but failed to sustain above USD 1100/Oz levels.
Sixth weekly loss on cards?
The metal has turned positive on the day and currently trades around USD 1095.60/Oz. However, the failure to sustain above USD 1100/Oz has raised the possibility of the metal ending below the previous week’s closing at USD 1098.80/Oz.
Still, short covering ahead of the month end closing may help the metal post modest weekly gains and end the five week losing streak. Moreover, there are no data on the cards now that could lead to sudden recovery in the USD index, which now trades 1% lower at 96.60 levels. Consequently, doors are open for profit taking/technical correction in Gold.
Gold Technical Levels
The immediate resistance is seen at 1100, above which the metal could extend gains to 1105 (July 27 high). On the other hand, support is seen at 1094.16 (hourly 200-MA) and 1089.92 (hourly 50-MA).
(Market News Provided by FXstreet)