FXStreet (Mumbai) – The yellow metal came under renewed selling pressure in the Asian trades, and now heads towards multi-year lows reached in August in response to the broad USD strength and the recovery in risk-sentiment.
Gold: weakness persists on stronger USD
Currently, gold trades -0.21% lower at 1081.20, retreating slightly from fresh session lows struck at 1080.80 last minutes. Gold extends its long run of losses and hovers near three-month lows on the back of strengthening greenback amid increased Dec Fed rate rise bets.
Moreover, rebounding risk-on trades as Paris terror attacks-led uncertainties peter out, also diminished the safe demand for the bullion. While upbeat sentiment on the global equities further dulled gold’s allure as an alternative higher yielding asset.
In the day ahead, the US CPI report will throw fresh light on the Fed Dec rate hike prospects and hence may have major impact on the gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1085.35/93 (1h 50 &100-SMA) and 1092.31 (1h 200-SMA). Meanwhile, the major support stands at 1080 (psychological levels), below which doors could open for 1075 (Ten-year lows).
(Market News Provided by FXstreet)