Gold suffers minor sell-off, US stocks advance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Gold suffered a minor dip in the early US session after prices breached the double top on intraday charts, but prices still managed to sustain above 100-DMA at USD 1143.24/Oz.

    Gold struggles amid rising stocks

    US stocks begun the day on a positive note, with Dow Jones trading 0.8% higher on the day. The positive action is keeping a lid on the recovery in gold, restricting it around USD 1147/Oz levels.

    The metal rose twice earlier today to a high of USD 1153/Oz, before breaking below the double top neckline at USD 1146.91/Oz and falling lower to 1143.79/Oz.

    Ahead in the day, investors are likely to keep gold prices on a positive footing on falling Fed rate hike bets. As per the CME Fed watch figures, the October rate hike probability is almost negligible now, while the December probability is mere 30% or so.

    Gold Technical Levels

    The metal currently trades around USD 1147/Oz, with immediate hurdle seen at USD 1153.00, above which the immediate resistance is seen at 1156.70 (Sept 24 high), followed by a major hurdle at 1169.99 (Aug 24 high) and 1200 levels. On the downside, a break below 100-DMA at 1143.25 would expose 1132.90 (Nov 2014 low) and 1121.50 (50-DMA).
    For more information, read our latest forex news.

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