FXStreet (Mumbai) – Gold’s recovery from 1058 region met fresh supply at the daily pivot and the prices drifted slightly lower, only to find support from the ongoing weakness in the Asian stocks.
Gold back above $ 1060
Currently, gold trades modestly flat at 1064.20, having posted day’s low at 1058.20 and day’s high at 1065.70. Gold keeps its recovery mode intact from more than one week lows and appears to gather pace for further upside as the Asian equities prolongs the sell-off on the back of tumbling oil prices and persisting nervousness ahead of the FOMC decision. The Nikkei drops -0.72% while China’s A50 index loses -0.30% so far.
Moreover, the extension of losses in the US dollar against its major competitors also keeps the sentiment around the yellow metal buoyed. The USD index drops -0.18% to 97.56 levels. Looking ahead, the US CPI report may have some impact on the bullion while the main drive for gold is likely to remain Wednesday’s Fed decision.
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Gold Technical Levels
The metal has an immediate resistance at 1069.25 (20-DMA) and 1071.74 (1h 100-SMA). Meanwhile, the support stands at 1058.20 (Daily Low), below which doors could open for 1054.44 (Daily S1).
(Market News Provided by FXstreet)