FXStreet (Mumbai) - Gold prices traded flat in the Asian session as did most other related markets as investors digest the last week’s dovish FOMC statement and consider the possibility of a rate hike in October.
Trades above Nov 2014 low
The metal took out the Nov 2014 low of USD 1132.90/Oz levels on Friday and continues to trade well above the same today. The Asian markets began the week on a negative note as investors price-in heightened worries of a slowdown in China after the Fed’s dovish turn.
Meanwhile, the European futures are also pointing to a negative day ahead. The long duration treasury yields are going nowhere, however, a two basis point drop in the two-year yield could offer support to the yellow metal. Ahead in the day, sentiment in stock markets and the resulting moves in the treasury yields could guide the metal.
Gold Technical Levels
At USD 1139/Oz levels, the immediate resistance is seen at 1150.00, above which the prices could rise to 1169 (Aug 24 high). On the other side, support is seen at 1113.55 (50-DMA) and 1100 levels.
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