Gold rebounds in Asia, nears $ 1100

FXStreet (Mumbai) – Gold prices on Comex staged a solid comeback in Asia, after witnessing a steep drop to the lowest levels in five years on Wednesday, as USD bulls took a breather in its upsurge while mixed Asian equities also boosted the yellow metal as a higher yielding asset.

Gold prices fights for $ 1100

Currently, gold trades 0.55% higher at 1097.50, bouncing-off lows reached at 1192.50 earlier in the session. Gold stalled its downward spiral and posed a strong recovery after traders resorted to profit-taking after almost a week-long run of losses.

Moreover, a broadly weaker US dollar, consolidating previous gains following upbeat US data led rally also supported the upside in gold prices. The US dollar index, a virtual gauge of greenback’s strength, trades -0.10% lower at 97.53.

Looking ahead, markets await fresh cues from US employment data due later in the day which may result in major USD moves.

Gold Technical Levels

The metal has an immediate resistance at 1100 and 1106.40 levels. Meanwhile, support stands at 1086 below which doors could open for 1080 levels.

Gold prices on Comex staged a solid comeback in Asia, after witnessing a steep drop to the lowest levels in five years on Wednesday, as USD bulls took a breather in its upsurge while mixed Asian equities also boosted the yellow metal as a higher yielding asset.

(Market News Provided by FXstreet)