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Gold capped below $ 1130, despite risk-aversion

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - Gold futures on Comex continue to remain on the bids for the third consecutive session as the bulls remain supported by the underlying risk-off theme extending into Asia.

    Gold stays well above 5-DMA

    Currently, gold trades 0.13% higher at 1128.60, having faced rejection at 1130 in opening trades. The yellow metal continued to benefit from the risk-aversion at play on the back of a global sell-off triggered by almost 7% slump in oil prices overnight.

    Moreover, with negative interest rates adopted by most global central banks, gold appears a better investment options across the financial markets, as well as a safer bet in wake of the recent global markets turmoil.

    Meanwhile, the prices will remain underpinned by the risk-off market profile, while the US ADP report will be closely eyed for fresh cues on the dollar-priced in yellow metal.

    Gold Technical Levels

    The metal has an immediate resistance at 1130 (daily high/ psychological levels) and 1134.70 (Nov 3 High). Meanwhile, the support stands at 1123.76 (5-DMA) below which doors could open for 1121.47 (1h 100-SMA).
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