FXStreet (Mumbai) – Gold futures on Comex keep its bullish momentum intact for the second day in a row and heads higher towards fresh multi-week peak as markets build up on gains ahead of Wednesday crucial economic events from the US – CPI and Fed minutes.
Gold in a wait and see mode
Currently, gold trades 0.12% higher at 1119.70, easing-off highs reached at 1120.50. The yellow metal edged higher mainly on increased safe-haven bids after Chinese indices crashed on yuan fears.
Moreover, traders’ remains nervous awaiting the release of the Federal Reserve (Fed) minutes on its monetary policy reasoning and fresh consumer price indicators which are expected to show a slight increase over the past year.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades modestly flat at 96.82. A weaker US dollar makes dollar-denominated commodities cheaper for holders in foreign currency. Markets now await US housing data for further USD moves, eventually impact gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1122 and 1126 levels. Meanwhile, support stands at 1116 below which doors could open for 1110 levels.
(Market News Provided by FXstreet)