FXStreet (Mumbai) – Gold prices extend the overnight recovery mode in mid-Asia, after the Fed minutes-led spike above 1150 levels was quickly faded and the prices reverted to the pre-minutes range as the bad news became good news again.
Gold: attempting another run towards 1150?
Currently, gold trades flat at 1144.20, recovering from 1138.10 session lows. Gold prices erased overnight losses and now trades muted, gathering pace to re-attempt Fed minutes-highs near 1150 levels.
However, the upside in the yellow metal remains limited as the persisting risk-on rally in equities continue to diminish gold’s allure as a safe-haven.
Whilst markets continue to digest the Fed minutes which turned out to be mixed, with the members remaining concerned about the US economic growth and external developments, but at the same time maintained the prospects for the rate-hike this year.
Later in the day, the prices will be influenced by the broader market sentiment amid a data-thin global macro trading calendar.
Gold Technical Levels
The metal has an immediate resistance at 1150 (round number) and 1155.90 (Sept 24 High) levels. Meanwhile, support stands at 1135.63 (20-SMA) levels below which doors could open for 1131.65 (Hourly 200-SMA) levels.
(Market News Provided by FXstreet)