FXStreet (Mumbai) – Gold prices are going nowhere on Tuesday after Friday’s rally as investors consider whether weak economic data will encourage central banks to keep monetary policy accommodative for longer.
Risk-on cap gains
The metal remained sideways on Monday on account of the risk-on rally in the equity market across the globe. The Asian equities advanced today for the fifth consecutive session. However, the European equities are back in the red today. Still, the metal is having a hard time rising above USD 1140/Oz levels.
Meanwhile, the 0.22% drop seen in the USD index is offering support to the metal on a lacklustre trading day. Ahead in the day, the yellow metal is likely to take its cues from the sentiment in the US stocks.
Gold Technical Levels
At USD 1138.40/Oz, the metal faces a cluster of resistance in the range of 1140-1150, beyond which the offers are seen directly at 1170 (Aug high) levels . On the downside, immediate support is seen at 1126.85 (50-DMA), under which the sell-off could last till 1100 level is tested.
(Market News Provided by FXstreet)