Gold: Recovery fizzles in Asia, all eyes on NFP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The post-ECB recovery mode in the yellow metal ran out of legs near Thursday’s high on the back of broad based USD rebound, as the focus shifts towards the US jobs report.

    Gold hovers around hourly 100-SMA

    Currently, gold trades modestly flat at 1060.60, retreating from session highs reached at 1064.10. Gold fell in the red this session as the US dollar regained lost footing across the board, making the dollar-denominated bullion expensive to the holders in other currencies. The USD index now gains 0.24% to 98.05, recovering from a drop to 97.60.

    Gold prices, although remain supported on persisting risk-off sentiment triggered by plunging Asian stocks after the ECB failed to impress markets on Thursday. ECB extended its QE program until March 2017 and slashed the deposit rate to -0.3%, in line with expectations.

    Meanwhile, gold traders await the big risk event, the US payrolls, lined up for release later today, which is expected to confirm a Fed hike in the next few weeks and thus, may have major impact on the USD.

    Gold Technical Levels

    The metal has an immediate resistance at 1064.10/60 (today’s & Dec 3 High) and 1069.50 (Dec 2 High). Meanwhile, the major support stands at 1057.18 (1h 20-SMA), below which doors could open for 1049.30 (Dec 2 Low).
    For more information, read our latest forex news.

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