FXStreet (Mumbai) – Gold prices extended gains to fresh session highs in the early US session as the S&P futures turned negative, ignoring the upbeat weekly jobless claims figure.
Gold up 0.7%
The metal currently trades around USD 1110/Oz levels. Prices remained stuck around USD 1105 during the European session. The concerns of a Fed rate hike next week could have been the reason behind the drop in the yellow metal on Wednesday. However, the metal managed to hold above USD 1100/Oz levels.
The latest uptick in the metal was seen on signs of weakness in the US index futures. The S&P 500 futures are indicating the index is likely to open 10 points or 0.5% lower. Ahead in the day, the action in the US equities and the movement in the 2-yr treasury yield could be watched out by the metal traders.
Gold Technical Levels
The immediate support is seen at 1100, under which the metal could drop to 1086 (July 22 low). On the other side, resistance is seen at 1110 (Aug 18 low) and 1123.50 (previous day’s high).
(Market News Provided by FXstreet)