Gold extends declines near $ 1085, US jobs data eyed

FXStreet (Mumbai) – Gold futures on Comex dived deeper into the red during the European session, as the recent comments from Fed voting member Lockhart brought back Sept rate-hike bets back on table, boosting the US dollar at the expense of the bullion.

Gold keeps falling on Fed rate-hike talks

Currently, gold trades -0.52% lower at 1085, recovering from session lows reached at 1083.40. Gold remained in the red, although recovered from lows, as the focus shifts to the upcoming US data flow especially the ADP jobs and NFP report which may provide fresh cues on the timing of the Fed rate-hike, thereby boosting the USD bulls.

Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, now trades 0.16% higher at 98.21. A stronger greenback makes dollar-priced in gold more expensive to holders on other currencies and vice-versa.

Moreover, in an increased evidence of reducing investors’ confidence in the yellow metal, investors sold gold from physically-backed funds for a 13th time in 14 days. They cut holdings by 3.3 metric tons to 1,520.2 tons, the lowest since 2009, data compiled by Bloomberg show.

Gold Technical Levels

The metal has an immediate resistance at 1090 and 1094.40 levels. Meanwhile, support stands at 1080 below which doors could open for 1073.70 levels

Gold futures on Comex dived deeper into the red during the European session, as the recent comments from Fed voting member Lockhart brought back Sept rate-hike bets back on table, boosting the US dollar at the expense of the bullion.

(Market News Provided by FXstreet)