Thursday, September 10, 2015

Gold bounces-off 1-month lows, firmer around $ 1107

FXStreet (Mumbai) - Gold price on Comex reversed a small portion of yesterday’s steep fall to the lowest levels seen in the last four weeks, reached just ahead of 1100 threshold.

Gold holding above hourly 20-SMA

Currently, gold trades 0.43% higher at 1106.70, having posted a high at 1107.40 and a low at 1102.80. Gold extends its recovery mode from fresh one-month lows largely on the back of profit-taking after Wednesday’s sharp drop.

Gold prices plunged yesterday on the back of higher demand for riskier assets. Wednesday's rally on Asian and European equity markets diminished demand for the precious metal as a safe-haven commodity, while a buoyant US dollar made it less attractive for foreign investors.

As the economic calendar is light over the next two days from the US, traders' attention is going to be mainly driven by speculation over the timing of the Fed first rate hike ahead of its monetary policy meeting on Sept 17.

Gold Technical Levels

The metal has an immediate resistance at 1110 (Aug 11 Low) and 1115.25 (50-DMA) levels. Meanwhile, support stands at 1100 below which doors could open for 1094 (Aug 11 Low) levels.
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