FXStreet (Mumbai) – Gold strengthened moderately for the first time in more than one week, trading closer to USD 1100/Oz levels.
Gold rises as equities fall
The overnight weakness in the US equities, coupled with the mixed action in the Asian equities put a floor under the yellow metal. Meanwhile, the weakness in the USD index helped the metal tick moderately higher.
However, the bulls seem hesitant on account of rate hike expectations in the US. As per the latest Bloomberg survey, the market sees a 50% probability of a rate hike in September. Ahead in the day, the broader market sentiment and the movement in the USD index could continue to affect the metal.
Gold Technical Levels
The metal currently trades at USD 1098/Oz; up 0.5% on the day. The immediate resistance is seen at 1100, above which gains could be extended to 1130.00. On the flip side, a break below the immediate support at 1090 could see the prices dip to 1072 (weekly low).
(Market News Provided by FXstreet)