FXStreet (Mumbai) – Gold prices on Comex bounced-off 1080 – key support levels and extend its recovery in the mid-European session, having breached the 200-DMA resistance, as broad based US dollar weakness continues to aid the recovery in the yellow metal.
Gold rises on softer USD
Currently, gold trades 0.31% higher at 1092.30, having posted fresh session highs at 1093.90 some minutes ago. Gold extends its recovery from near five-year trough largely on profit-taking as traders preferred to lock-in gains heading into a data-heavy US calendar later this week.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, now trades -0.13% lower at 97.47. A weaker greenback makes dollar-priced in gold cheaper to holders on other currencies and vice-versa.
Bullion markets remained entrenched in the two-week range at the beginning of the new month following massive losses in early July, as investors kept weighing US macro-data and its implication for Federal Reserve policy.
Markets now await US factory orders data which may provide further incentive on the USD moves in the day ahead.
Gold Technical Levels
The metal has an immediate resistance at 1092.89 (200-DMA) and 1098 levels. Meanwhile, support stands at 1080 below which doors could open for 1073.70 levels
(Market News Provided by FXstreet)