FXStreet (Mumbai) – Gold futures on Comex stalled the upward moves during the European session and turned back to the familiar range near 1090 levels as traders unwind their positions ahead of the release of the crucial US employment data.
Gold deflates from 1096.90
Currently, gold trades almost unchanged at 1090.50, back to square one. The yellow metal traded choppy so far, oscillating in $ 10 range, as traders resorted to repositioning themselves ahead of the most influential data of the week – the US non-farm payrolls which is likely to spur volatility and may trigger major USD moves.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, now trades 0.06% higher at 97.94. A stronger greenback makes dollar-priced in gold more expensive to holders on other currencies.
On the release of NFP, non-interest-bearing gold will be dragged to fresh lows should strong numbers be released, further fuelling speculation the Fed will hike interest rates in September.
Overall bullion remains under pressure from a strong dollar, which is eroding demand for the lustrous metal as an alternative investment.
Gold Technical Levels
The metal has an immediate resistance at 1097 and 1100 levels. Meanwhile, support stands at 1080 below which doors could open for 1073.70 levels
(Market News Provided by FXstreet)