FXStreet (Mumbai) – Gold prices halted its consolidative mode seen in Asian trades and fell sharply into losses in the European morning, breaking below key support at 1070 – psychological levels.
Gold pressured on looming Fed decision
Currently, gold drops -0.75% to fresh session lows reached at 1067.10 last minutes. Gold halted the recent winning-streak and trades on the back foot as the bulls remain wary ahead of the first Fed lift-off in more than nine years later this week.
Moreover, markets are rebuilding USD longs heading into Wednesday’s Fed decision and hence, drive the buck higher across the board. The US dollar rises further to 97.86, up 0.36% on the day.
Meanwhile, markets ignored upbeat Chinese economic data, and as such the bullion failed to benefit from the improved retail sales and industrial production data from the world’s top gold consumer. Later today, the greenback will continue to track the USD moves for further momentum in absence of significant macro data on the cards.
——-
What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 – The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too.
——-
Gold Technical Levels
The metal has an immediate resistance at 1076.90 (Daily High) and 1079.40 (Dec 11 High). Meanwhile, the support stands at 1064.40 (Dec 11 Low), below which doors could open for 1058.70 (Dec 4 Low).
(Market News Provided by FXstreet)