FXStreet (Mumbai) – The yellow metal extends its side-trend in the European session and trades directionless below $ 1140 as markets await fresh cues from the upcoming US trade data.
Gold holds above 100-DMA
Currently, gold trades dead flat at 1137.50, fading a spike to 1139.50 session highs. Gold trades muted, locked-in a tight range between 100-DMA and 1140 threshold, as markets continue to assess 2015 Fed rate hike possibility in light of the recent weak employment and services sector data.
Moreover, the bullion continues to trade lacklustre as any gain arising from the falling US treasury yields is offset by the rising European stocks. Gold is usually considered as an alternative investment asset to the equities and the bonds.
Later in the US session, the focus will remain on the US trade data, which is expected to reveal a deficit of $48 billion for August, against the gap of $41.9 billion seen in July. The data is expected to boost the bullion at the expense of the buck.
Gold Technical Levels
The metal has an immediate resistance at 1140 (round number) and 1141.70 (Oct 5 High) levels. Meanwhile, support stands at 1132.50 (Oct 5 Low) levels below which doors could open for 1127.80 (Sept 18 Low) levels.
(Market News Provided by FXstreet)