FXStreet (Mumbai) – The yellow metal traded with sizeable losses on Tuesday and remains below 1150 marker, showing little reaction to the latest PBOC move.
Gold keeps the red
Currently, gold trades -0.36% lower at 1149.60, recovering from 1144.60 lows reached in the European trades. The yellow metal recovered from lows, although remains in the red zone as the markets ignored the latest Chinese central bank rate cut news in a bid to shore up its economy, which may in turn benefit gold prices as China is the world’s top gold consumer.
The People’s Bank of China (PBoC), the country’s central bank, reduced benchmark interest rates by 0.25% on Tuesday, reacting to massive turbulence in local Chinese as well as global stock markets.
Moreover, the gains remain capped as the greenback further strengthened amid rising risk-on sentiment after the PBOC announcement. The US dollar index, a virtual gauge of greenback’s strength, trades 0.71% higher at 94.05. A stronger greenback makes gold more expensive for holders in foreign currencies.
Gold Technical Levels
The metal has an immediate resistance at 1160 and 1164 levels. Meanwhile, support stands at 1144.60 (Today’s Low) below which doors could open for 1140 levels.
(Market News Provided by FXstreet)