Gold sits at 3-month tops amid mixed Asia, above $ 1140

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Gold futures on Comex cling to the bids, although ease slightly from fresh three-month highs reached at 1146.10 in the last US session.

    Gold trades above all major DMAs

    Currently, gold trades modestly flat at 1141.50, unable to extend beyond 1144.20 levels so far this session. The yellow metal remains underpinned by mixed trading seen on the Asian indices while a minor recovery seen in the US dollar against its major peers, appears to restrict the upside in gold.

    Gold prices jolted to fresh three-month peaks the day earlier after the poor ISM and Markit services sector activity reports from the US disappointed big time, with markets losing faith in the Fed rate hike prospects this year. The CME group’s FED Watch tool reflected only 14% chance of a Fed hike in March, 18% in April and 24% in June. Gold tends to benefit in a low-interest rate environment as it is a non-interest bearing investment asset.

    Looking ahead, all eyes remain on the US payrolls data due on Friday for further insights on the Fed’s outlook on the interest rates, which have major impact on the USD moves.

    Gold Technical Levels

    The metal has an immediate resistance at 1147.60 (Oct 30 High) and 1150 (psychological levels). Meanwhile, the support stands at 1137.83/ 1136.29 (daily pivot/ 1h 20-SMA) below which doors could open for 1131.50/1130 (5-DM/ round number).
    For more information, read our latest forex news.

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