Gold deep in the red, around $ 1143

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices failed to withstand the heavy gains seen after the poor NFP results from the US and dropped almost $ 10 from the fresh two-week high levels reached on Wednesday at 1152.90.

    Gold drops below hourly 50-SMA

    Currently, gold trades -0.57% lower at 1142.40, easing-off fresh highs scored at 1145.70 in early Asian hours. Gold prices gave away most of the previous gains and remain deep in the red as traders re-adjust their positions heading into the much-awaited FOMC minutes later today.

    Meanwhile, the yellow metal also failed to benefit from the sharply lower treasury yields and the persisting risk-off trades as the profit-taking slide after a 4-day rally overshadowed any upside in the prices.

    Later in the day, the prices will be influenced by the broader market sentiment while the FOMC minutes will hold the key for further direction on the bullion.

    Gold Technical Levels

    The metal has an immediate resistance at 1150 (round number) and 1155.90 (Sept 24 High) levels. Meanwhile, support stands at 1136.57 (Hourly 100-SMA) levels below which doors could open for 1131.79 (Hourly 200-SMA) levels.
    For more information, read our latest forex news.

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