Gold retreats from 2-week lows ahead of US data

FXStreet (Mumbai) – The gold bears appear to have loosened their grip somewhat, with the prices recovering slightly from fresh two-week lows as we progress towards the US session.

Gold retreats from 1118.60

Currently, gold trades -0.46% lower at 1121.50, stalling the recovery near 50-DMA then located at 1123. The yellow metal remains heavy on the back of a broadly stronger greenback as markets anticipate another round of hawkish words from the Fed Chair Yellen later today, which is likely to further pressure the non-interest bearing bullion.

Also, expectations of stronger ADP employment data to be reported ahead of the US open (192k exp. Vs. 190k previous) continues to support the US dollar at the expense of gold.

Gold Technical Levels

The metal has an immediate resistance at 1127.70 (Today’s High) and 1134.40 (Sept 29 High) levels. Meanwhile, support stands at 1117.10 (Sept 17 Low) below which doors could open for 1110 levels.

The gold bears appear to have loosened their grip somewhat, with the prices recovering slightly from fresh two-week lows as we progress towards the US session.

(Market News Provided by FXstreet)