FXStreet (Mumbai) – Gold prices on Comex prolong its downward trajectory and heads for a retest of fresh five year lows reached at 1076.20 as the US dollar dominance across the board continues to drag the yellow metal lower.
Gold pressured on stronger USD
Currently, gold trades -1.52% lower at 1077.50, retreating from 1090 highs. Gold came under renewed pressure this session after fresh bid wave caught the USD dollar driving the buck higher across the board.
The US dollar index, a virtual gauge of greenback’s strength, trades 0.42% lower at 97.77. A stronger greenback makes dollar-priced in gold more expensive to holders on other currencies.
Markets now await a set of US housing data due later today following stronger than expected US jobless claims data released on Thursday which bolstered the case for Fed rate-hike as early as this Sept.
Higher interest rates would be a bearish development for gold as a non-interest bearing asset.
Gold Technical Levels
The metal has an immediate resistance at 1090 and 1095 levels. Meanwhile, support stands at 1076.20 below which doors could open for 1070 levels.
(Market News Provided by FXstreet)