FXStreet (Mumbai) – Gold prices hit fresh session lows, but quickly recovered pointing to relative resilience in the hard currency despite the strong US ISM non-manufacturing data.
Hovers around USD 1116/Oz
The USD extended gains across the board after the US ISM non-manufacturing number printed at the second highest in a decade. The employment sub index also printed at the second-highest since August 2005.
The data pushed the two-year treasury yield, which mimics the rate hike bets, higher by almost two basis points. Moreover, the upbeat services data overshadowed the weak ISM manufacturing released on Monday and a not so impressive US ADP report released today.
The USD index extended gains to 98.00 levels, despite which the metal has quickly recovered from the lows.
Gold Technical Levels
The immediate resistance is seen at USD 1118.25 (61.8% of Jul-Oct rally), above which the prices could re-test 1132.25 (50% of Jul-Oct rally). On the lower side, a break below Tuesday’s low at 1113.60 would expose 1100 levels.
(Market News Provided by FXstreet)