FXStreet (Mumbai) – Gold prices reacted to the weakness in the US equity index futures by hitting a fresh daily high of USD 1108.05 levels.
Safe haven demand on the rise
The safe haven bids are taking the metal higher as the drop in the oil prices pushed the US index futures lower by almost 0.50%. The major European stocks, which were trading sideways to negative, have slipped lower to trade almost 1% down on the day.
Meanwhile, a minor 0.20% drop in the USD index is also helping the yellow metal. Ahead in the day, the action in the stock markets and the regional US manufacturing indices could influence the metal.
Gold Technical Levels
The metal trades around USD 1107/Oz levels. A break above 1109.70 (Jan 20 high) would see prices rise to 1113.15 (Jan 8 high). On the other hand, a break below 1100 could see the prices drop to 1092.45 (Jan 21 low), under which the losing streak could be extended to 1082.51 (Jan 19 low).
(Market News Provided by FXstreet)