FXStreet (Mumbai) – The yellow metal rallied in Asia and stormed its way through the 1100 barrier to fresh two-month highs on the back of increased demand for safe-havens as Asian stock extend the sell-off.
Gold rises for the 4th straight session
Currently, gold rises 0.55% to 1098, easing-off multi-week highs reached at 1102.50 in last hours. Gold prices extend the bullish run into a fourth day this Thursday as the rout in the Chinese equities on Yuan devaluation coupled with tumbling oil prices continue to rattle investors’ confidence.
Investors run for cover in the safety asset, gold, in times of uncertainty and unrest, spurred this time by the Chinese central bank’s lack of communication on yuan. While a weaker US dollar, following a less hawkish FOMC meeting minutes released overnight, also underpins gold prices.
Furthermore, gold also benefits from rising global growth fears sparked by the World Bank on Wednesday, after it slashed world growth outlook for 2016 to 2.9% from 3.3% seen previously.
Nothing of note in terms of economic news in the session ahead, and hence, the bullion will continue to track broader market sentiment and the USD moves.
Gold Technical Levels
The metal has an immediate resistance at 1102.50 (Daily High) and 1109.50 (Nov 6 High). Meanwhile, the support stands at 1091.10 (Daily Low), below which doors could open for 1084.36 (Daily S3).
(Market News Provided by FXstreet)