Gold dumped to $ 1045, cheapest since Feb 2010

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The rout in the gold prices continue to gain further traction as the US NFP Friday nears, with the bullion heavily battered to a new more than five year lows in last hours.

    Gold drops to 200-DMA

    Currently, gold trades modestly flat at 1048.60, recovering slightly from lowest levels since Feb 2010 reached at 1045.40 in early trades. Gold came under renewed selling pressure this session as the greenback jumped back on the bids against its major competitors and resumed its ongoing bullish run, shrugging off weakness in global equities. The USD index now gains 0.07% to 100.12, with 100.54 back in sight.

    The yellow metal continues to face double whammy after Fed Chair Yellen’s upbeat comments reinforced Dec Fed rate hike beliefs while the impressive US ADP print boosted hopes for a stronger official NFP report and eventually confirm a Dec rate lift-off. Yellen delivered optimistic remarks on the US economic prospects in her speech, citing that the central bank expects strengthening labour market to push inflation towards its 2% target.

    In the day ahead, markets will continue to digest the latest Fed speaks with focus once again on Yellen’s testimony ahead of Friday’s most influential US payrolls data.

    Gold Technical Levels

    The metal has an immediate resistance at 1051.14 (1h 5-SMA) and 1057.58 (5-DMA). Meanwhile, the major support stands at 1045.40 (daily Low), below which doors could open for 1030 (Feb 2010 levels).
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