FXStreet (Mumbai) – Gold prices are trying to move off the mat, trading moderately higher around USD 1191/OZ levels largely on account of weakness in the USD index.
Still, the buying interest is dull due to expectations that the Federal Reserve will raise key interest rates sooner than later. The treasury yield curve has steepened today for the first time since last Wednesday’s FOMC statement. The yield curve usually flattens when the markets expect the interest rate hike.
At the moment, the metal is down more than 17% since its 52-week high of USD 1,313.90/Oz. On the day, the metal is up 0.17% at USD 1091.20/Oz. The USD index is down 0.12% at 97.448. The metal could extend gains in case the US stocks extend the risk aversion seen on Monday. The US factory orders figure due for release could influence the metal.
Gold Technical Levels
The immediate resistance is located at 1100, followed by a major resistance at 1132.90 (Nov 2014 low). On the other hand, support is seen at 1073.10 (July 24 low) and 1050.00 levels.
(Market News Provided by FXstreet)