FXStreet (Mumbai) – Gold futures on Comex keep heavy gains and hover near fresh five week highs in the mid-European session, as US dollar continues to lose against its major competitors after the Fed minutes revealed that a rise in US interest rates in September looks improbable.
No Sept rate-hike signal bolsters the yellow metal
Currently, gold trades 0.88% higher at 1137.90, retreating from fresh five week highs of 1141.50. The yellow metal remains surged to its highest level in one month on Thursday as investors sold off equities and US dollars, seeking safety in the commodity after the FOMC minutes released on Wednesday signalled that the expected interest rate rise in September will probably not go ahead, moving the date further down the road.
Meanwhile, the US dollar index – a virtual gauge of greenback’s strength, trades -0.07% lower at 96.37. A weaker US dollar makes dollar-denominated commodities cheaper for holders in foreign currency.
Moreover, falling global equities dragged by China stock rout reignited risk-off sentiments with traders flocking to safe-havens such as gold. The precious metal looks to gain for the second week, after ending its longest downward spiral since 1999.
Gold Technical Levels
The metal has an immediate resistance at 1146.30 (July 17 High) and 1150 levels. Meanwhile, support stands at 1132.80 (Today’s Low) below which doors could open for 1127.90 (Aug 19 Close) levels.
(Market News Provided by FXstreet)