FXStreet (Mumbai) – Gold prices on Comex snapped previous gains and fell back into the negative territory on Wednesday, as increasing Sept Fed rate hike bets continue to hurt the non-interest bearing yellow metal.
Gold pressured amid Fed rate-hike talks
Currently, gold trades -0.32% lower at 1087.30, recovering from session lows reached at 1083.90. Gold extends came under renewed selling pressure and gave back a part of yesterday’s gains as the US dollar remains supported backed Fed’s Lockhart comments on Tuesday.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, now trades 0.12% higher at 98.18. A stronger greenback makes dollar-priced in gold more expensive to holders on other currencies and vice-versa.
Moreover, the upbeat release of Chinese services sector figures also failed to lift gold prices above 1090 levels. Concerns over the economy have weighed on the outlook for commodities recently.
Meanwhile, fresh US jobs numbers start with the release of the ADP payrolls report on Wednesday. The report will set the tone for the official employment numbers on Friday.
Gold Technical Levels
The metal has an immediate resistance at 1090 and 1094.40 levels. Meanwhile, support stands at 1080 below which doors could open for 1073.70 levels
(Market News Provided by FXstreet)