FXStreet (Mumbai) – Gold futures on Comex continues to mire near five-year trough on Thursday as the rising expectations of a Sept Fed rate hike following strong services sector numbers from the US dents gold’s appeal as a higher yielding asset.
Gold eyes lowest levels in 5 years
Currently, gold trades -0.15% lower at 1084, staying in the familiar range below 1090 levels. Stronger than expected US services sector report added to the recent speculations of Sept Fed rate lift-off, bolstering USD bulls and thus keeping gold undermined.
Moreover, gold prices keep the red despite falling Asian equities and a relatively lower US dollar as the focus now shifts to the upcoming US jobs data which is likely to provide fresh cues on the US interest rates outlook.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, now trades -0.10% higher at 97.88. A weaker greenback makes dollar-priced in gold cheaper to holders on other currencies and vice-versa.
Looking ahead, markets await jobless claims data from the US, updated weekly on Thursdays, which is still showing no sign of a slowdown in the labor market. For the next reading, the market is expecting an increase of claims to 272,000, which is still very low.
Gold Technical Levels
The metal has an immediate resistance at 1090 and 1094.40 levels. Meanwhile, support stands at 1080 below which doors could open for 1073.70 levels.
(Market News Provided by FXstreet)