FXStreet (Mumbai) – Gold futures on Comex brought a halt to its three-day winning streak and turned in to the negative territory as demand for safe-havens diminished amid third China yuan devaluation and a stronger greenback.
Gold retraces from $ 1126.10
Currently, gold trades -0.28% lower at fresh session lows at 1120.20. The yellow metal remains 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.
Gold prices jumped to fresh three week highs on Wednesday after the current devaluation of the yuan has fuelled speculation that the Federal Open Market Committee (FOMC) may hold off on an interest rate hike in September, which boosted the non-interest bearing gold prices.
Meanwhile, the US dollar broadly rebounded today which also added to the weakness in gold prices. The US dollar index, a virtual gauge of greenback’s strength, now trades 0.29% higher at 96.56. 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)