Gold drops below USD 1100/Oz

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices dropped like a rock to a session low of USD 1087.90/Oz; its lowest since 10th August as the odds of Fed tightening increased after a strong US monthly non-farm payrolls report.

    Eyes July lows

    The metal is now eyeing the July lows around USD 1070/Oz as the USD rally could continue next week as the markets get into a debate about whether Fed will take baby steps – 10 bps or 12.5 bps – or proceed with 25bps move in December.

    The metal is set to suffer its eight consecutive days of losses and third straight weekly fall.

    Gold Technical Levels

    The immediate support is seen at 1085.29 (July 20 low), under which the metal could test July lows around USD 1070/Oz. A break below the same would expose 1032.30 (March 2008 high). On the other side, a corrective rally could face resistance at 1100 handle, followed by a major hurdle at 1120.68 (61.8% of July low to Oct high).
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