FXStreet (Mumbai) – The looming uncertainty over a Fed rate hike coupled with persisting worries of the health of China’s economy continues to keep the yellow metal suppressed.
Gold heading towards hourly 200-SMA
Currently, gold trades -0.34% lower at 1168.80, attempting a tepid-recovery from the session lows struck at 1167.30. Gold extends its gradual descent and moves further away from fresh multi-month highs reached last week on the back of worries over the demand from the gold’s top consumer, China, with markets still absorbing the recent Chinese macro data.
Moreover, growing uncertainty over the timing of a Fed rate hike after mixed economic data from the US last week, also keeps the gold prices in check. Last week, the US retail sales and factory data disappointed while the inflation and consumer sentiment outperformed.
While, the greenback remains supported across the board following impressive housing data released on Monday, which revived 2015 Fed rate hike bets and triggered renewed sell-off in gold. Sentiment jumped 3 points in October to 64 on the NAHB/Wells Fargo Housing Market Index, highest in a decade.
In the day ahead, the yellow metal will track the sentiment on the European and the US equities while a slew of Fed speaks will be eyed with Yellen’s speech expected to hog the limelight.
Gold Technical Levels
The metal has an immediate resistance at 1171.32 (10-DMA) and 1175.10 (hourly 50-SMA). Meanwhile, support stands at 1165.37 (hourly 200-SMA) below which doors could open for 1161.21 (200-DMA).
(Market News Provided by FXstreet)