FXStreet (Mumbai) – After ending a volatile session witnessed on Wednesday on an upbeat note, the yellow metal extends its recovery mode into Asia and holds firmer above 1070 barrier.
Gold: Unable to sustain at higher levels
Currently, gold trades 0.15% higher at 1073.70, hovering close to fresh session highs scored at 1074.50 some minutes ago. Gold remains bid this session and attempts recovery from NY lows near 1070 region as the ongoing weakness in the equities across the globe provides double booster shot to the bullion, with increased safe-haven bids on one hand and rising demand for alternative higher yielding assets on the other. Japan’s Nikkei is down -1%, while Australia’s SAX is losing -1.26%.
However, the upside remains capped by a minor-rebound seen in the US dollar against its major competitors, after witnessing a massive downslide in the previous session. The USD index rises 0.14% to 97.46, recovering from five-week lows struck at 97.21. While expectations of a Fed rate hike next week also keeps a lid on the prices.
Looking ahead, central banks’ events are expected to dominate the upcoming session ahead of a set of US economic data lined up for release in the NY session.
Gold Technical Levels
The metal has an immediate resistance at 1078.40 (Dec 8 High) and 1086/1086.50 (Dec 9 & 7 High). Meanwhile, the support stands at 1070 (round number), below which doors could open for 1067.24 (1h 200-SMA).
(Market News Provided by FXstreet)