FXStreet (Mumbai) – Gold prices moved back to trade around the daily high as the European stocks extended losses before the US opening bell, pointing to serious risk aversion ahead.
Weekly gain on cards
The metal appears on track to end the week higher after the dovish turn from the Fed not only hurt rate hike bets, but also appears to have spooked the financial markets across Europe and US. The Germany’s DAX currently trades 3.4% lower on the day.
The sharp losses have dragged the US index futures lower as well. The S&P futures now indicate the index could open 30 points lower after failing to capitalize on the dovish Fed in the previous session. Consequently, the metal appears destined for a northward journey heading into the weekend.
Gold Technical Levels
At USD 1136/Oz levels, the immediate resistance is seen at 1150.00, above which the prices could rise to 1169 (Aug 24 high). On the other side, support is seen at 1113.55 (50-DMA) and 1100 levels.
(Market News Provided by FXstreet)