FXStreet (Mumbai) – Gold prices turned positive for a brief moment before falling back into the red despite tepid US trade balance figures and weak US ADP employment report.
Gold underperforms due to rate hike bets
The dismal data penalised the US dollar across the board, but the yellow metal under performed other major currencies as buying interest remains dull on account of rate hike bets in the US. The weak data released today pushed the 2-year yield, which mimics rate hike expectations, lower. Still, gold failed to sustain moderate gains and fell back into losses.
The focus now shifts to the UISM non-manufacturing or services PMI figure. Meanwhile, sentiment on the Wall Street could also be on the investor’s watch list.
Gold Technical Levels
The metal currently trades moderately weaker around USD 1089/Oz levels. The immediate resistance is located at 1103 (July 31 high), above which prices could rise to 1132.90 (Nov 2014 low). On the other hand, support is seen at 1083.40 (daily low) and 1073.70 (July 24 low).
(Market News Provided by FXstreet)