FXStreet (Mumbai) – Gold futures on Comex extends its corrective slide and dropped to fresh session lows in the mid-European session, after the latest World Gold Council (WGC) report revealed a sharp drop in global gold demand, led by the world’s top two consumers of the precious metal – India and China.
Gold falls further from $ 1120
Currently, gold trades -0.65% lower at fresh session lows at 1116, losing almost $ 10 from three-week top reached at 1126.10 in early Asia. The yellow metal remains heavy as fresh sellers ran through the bullion as markets digest the latest WGC report citing an 11% drop in worldwide demand for gold led by India (dropping 30% in Q2 y/y).
Earlier today, gold reversed previous rally and slipped in to the red as the news of the People’s Bank of China (PBoC) depreciating the renminbi for the third consecutive day, this time by 1.1%, had little effect on gold prices, although the scale of the week’s third move is rather seen as bringing stabilization to the volatile currency market.
Meanwhile, the US dollar keeps its upmoves intact which further exacerbated the pain in the gold prices. The US dollar index, a virtual gauge of greenback’s strength, now trades 0.32% higher at 96.59. A stronger greenback makes dollar-priced in gold more expensive to holders on other currencies.
Gold Technical Levels
The metal has an immediate resistance at 1126.10 and 1133.80 levels. Meanwhile, support stands at 1115 below which doors could open for 1108 levels.
(Market News Provided by FXstreet)