FXStreet (Mumbai) – The yellow metal remains heavy and hovers within a shouting distance of the multi-year lows struck at 1051.10 on Friday in wake of a Dec Fed rate hike and growing China slowdown fears.
Gold trades below hourly 20-DMA
Currently, gold trades almost unchanged at 1055.70, heading for the worst monthly drop in almost three years. Gold prices continue to trade around a flat-line in Asia, consolidating heavy losses seen on Friday, after a stronger US dollar supported by an imminent Dec Fed lift-off battered the gold bulls.
Moreover, slowing Asian demand, despite the recent slide in prices, also dampened the sentiment around the bullion. As Reuters reported, China’s net gold imports from main conduit Hong Kong fell in October from a ten-month high reached in the previous month. While, India’s gold buying in the key December quarter is likely to fall to the lowest level in eight years, hurt by poor investment demand and back-to-back droughts.
In another evidence of waning investors’ confidence in the yellow metal, assets in SPDR Gold Trust, the world’s top gold-backed exchange-traded fund, fell 0.14% to 654.80 tonnes on Friday, the lowest since September 2008.
Looking ahead, gold prices are expected to remain suppressed heading into the key US jobs report this week, which is likely to pave the way for the first rate hike in the US in almost ten years.
Gold Technical Levels
The metal has an immediate resistance at 1060.50 (1h 20-SMA) and 1066.65 (1h 50-SMA). Meanwhile, the major support stands at 1051.10 (Nov 27 Low), below which doors could open for 1045.20 (Feb 2010 Low).
(Market News Provided by FXstreet)