FXStreet (Mumbai) – Gold prices revisited daily highs around USD 1088/Oz on the back of a weaker than expected US data, only to fall back to USD 1180/Oz as the USD recovered losses.
Weekly loss on cards?
A weekly loss appears more likely now, since the USD remains on a strong footing despite the weak data. The advance retail sales missed estimates to print at 0.1%. The initial reaction was a fall in the USD and rise in gold.
However, the USD recovered gains as the data did not alter market expectations about the December Fed lift off. Consequently, the metal appears more likely to drop for the fourth straight week.
Gold Technical Levels
At USD 1081/Oz, the immediate resistance is located at 1084.79 (hourly 50-MA) and 1088.77 (hourly 100-MA), above which the gains could be extended to 1198.52 (hourly 200-MA). On the other side, support is seen at 1079.89 (daily low) and 1070 (July lows).
(Market News Provided by FXstreet)