FXStreet (Mumbai) – Gold prices extended losses at the US opening bell, hitting the USD 1098/Oz mark even though US stocks took a dive in the early session.
Safe haven demand evaporates ahead of FOMC
The metal is once again not responding to the risk aversion seen in the equity markets in the US, as metal traders remain focused on the possibility of a fed rate hike next week. The US stock markets opened lower today, with Dow Jones trading 0.31% lower at 16,277.40 levels. Still, the metal extended losses from USD 1106/Oz to trade around USD 1100.00 levels.
The metal may take cues from the Michigan confidence index due for release in the US, but at the moment, the metal appears to be pointing southwards heading into the weekend.
Gold Technical Levels
The immediate support is seen at 1094 (Aug 11), 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)