FXStreet (Mumbai) – Gold price on COMEX failed to extend beyond 1070 region in early Asia, and retreated thereon to now consolidate around 1067 levels.
Gold supported at hourly 100-SMA
Currently, gold trades modestly flat at 1067, recovering from 1066.20 lows. Gold bulls took a back seat this session on the back of renewed bid tone seen in the US dollar against its major competitors ahead of today’s US jobs report and Yellen’s speeches. The USD index rises 0.09% to 99.96 levels.
The US ADP employment report is expected to show 191k jobs additions in the US economy in Nov against a 182k increase seen previously. The upbeat jobs data will further boost expectations of a stronger NFP report due on Friday, and thus, springing up Dec Fed hike bets. Gold tends to lose in a higher interest rates environment, as it a non-interest bearing asset.
Meanwhile, the bullion remains buoyed on the back of rising physical demand, as witnessed by higher premiums on the Shanghai Gold Exchange and rebound in US Mint’s sales of American Eagle coins last month.
Gold Technical Levels
The metal has an immediate resistance at 1070.80 (daily high) and 1074.60 (Dec 1 High). Meanwhile, the major support stands at 1063.40 (Dec 1 Low), below which doors could open for 1055 levels.
(Market News Provided by FXstreet)