FXStreet (Mumbai) – Gold prices extend the recovery from a brief drop to 1066 NY low and swing back above 1070 barrier, mirroring the pullback seen across the commodities.
Gold tested hourly 100-SMA near $ 1073
Currently, gold rises 0.30% to 1071.50, easing-off session highs printed at 1072.90, where the hourly 100-SMA intersects. Gold keeps its recovery mode intact this session, despite rebounding Asian equities, as markets preferred to lock-in gains on their gold shorts ahead of first batch US economic data to be published later today amid a light trading week.
The yellow metal kicked-off the final week of 2015 on a bearish note and joined the global commodities sell-off fuelled by sharp losses in crude oil prices.
Meanwhile, the recovery in the bullion may remain short-lived as illiquid markets are likely to keep gold under pressure, as many traders are off on a Christmas – New Year’s Day holiday break.
Gold Technical Levels
The metal has an immediate resistance at 1078.08 (50-DMA) and 1081.50 (Dec 21 High). Meanwhile, the support stands at 1065.90 (Dec 28 Low), below which doors could open for 1061.50 (Dec 16 Low).
(Market News Provided by FXstreet)