FXStreet (Mumbai) - Gold prices recovered slightly in Asia, although remain within a shouting distance of fresh monthly lows just ahead of 1100 levels.
Gold holds above crucial support – Oct lows
Currently, gold trades 0.36% higher at 1110.20, quickly retreating from fresh session highs reached at 1110.70 last hours. Gold sees a minor correction in the Asian session after witnessing the worst losing streak since July.
The bullion experienced a massive $ 15 slide on Wednesday and dropped to the lowest levels since Oct 2, after the Fed Chair Yellen repeated that the Fed rate hike remains a live possibility at its Dec gathering, while adding that the committee has not yet decided on the same.
Moreover, a batch of upbeat US macro data further boosted Dec Fed hike bets as focus now turns towards the most decisive US jobs data due on Friday, the non-farm payrolls.
Adding to the bearish sentiment on gold, SPDR Gold Trust, the top gold-backed exchange-traded fund, said its holdings fell to 680.11 tonnes on Wednesday - the lowest in six weeks.
Markets now look forward to the jobless claims from the US due later today before Friday’s official NFP data. While another round of Fed speaks will be closely heard for further hints on the probable Dec Fed lift-off.
Gold Technical Levels
The metal has an immediate resistance at 1113.50 (Sept 10 High) and 1119 (Oct 1 High). Meanwhile, the major support stands at 1105.80 (Oct 2 Low) below which doors could open for 1100/1098.20 (Psychological levels/ Sept 11 Low).
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