Gold: Bears take a breather, allow recovery near $ 1160

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Gold prices extend the overnight recovery from more than two-week lows into Asia, and now hovers around 1160, as bulls are offered some respite as dust settles over the less dovish Fed decision.

    Gold bounces-off multi-week lows ahead of $ 1150

    Currently, gold trades 0.42% higher at 1160.10, easing-off fresh session highs recorded at 1162 in last hours. Gold prices attempt recovery this session amid negative performance on the Asian equities which triggered renewed bouts of risk-aversion in markets.

    Also, gold traders resorted to profit taking after the steep decline seen yesterday, which also aids the recovery in the yellow metals.

    The bullion slumped to the lowest levels in more than two-week at 1152.20 in response to the hawkish FOMC statement, which stated that the Fed will re-asses the upcoming economic data and keep the rate-hike option alive at its Dec gathering, weighing heavily on the non-interest bearing gold.

    Markets now await US advance GDP numbers due later today while also eye China’s new five-year plan due to be published later this week for further cues.

    Gold Technical Levels

    The metal has an immediate resistance at 1167.04/45 (5 & 20-DMA) and 1170 (Oct 26 High + round number). Meanwhile, support stands at 1152.20 (Oct 28 Low) below which doors could open for 1143 (Oct 7 Low).
    For more information, read our latest forex news.

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