FXStreet (Mumbai) – The precious metal eased in Asia on Wednesday, as the bulls take a breather after reaching the highest level this week above 1180 threshold.
Gold supported at daily pivot
Currently, gold trades almost unchanged at 1177.50, having posted session highs at 1179.20. Gold failed to resist 1180 psychological barrier and retreated slightly, consolidating sharp gains seen yesterday. Gold bulls are currently seen on the back of foot as the upbeat sentiment surrounding the Asian stocks dulls the safe-haven demand for the yellow metal.
The bullion rallied on Tuesday, completely ignoring impressive US housing starts-led USD strength, on renewed talks of further easing by the global central banks including the BOJ and the ECB. While Fed rate hike bets are almost priced-out for this year.
In the day ahead, the yellow metal will track the sentiment on the European and the US equities while FOMC official Powell is due to speak again today amid a data-thin trading session ahead.
Gold Technical Levels
The metal has an immediate resistance at 1180.70 (Oct 20 High) and 1185.67 (daily R2). Meanwhile, support stands at 1175.27/1175 (daily pivot and low) below which doors could open for 1170 (round number).
(Market News Provided by FXstreet)