FXStreet (Mumbai) - Gold price on Comex was seen trading flat during the European morning hours, as markets digest the latest policy measures announced by China amid a broadly stronger USD backed by risk-on market profile.
Gold supported above 50-DMA
Currently, gold trades modestly flat at 1120.80, having posted a high at 1124.70 and a low at 1119.90. Gold prices extends its side-ways movement in to a fifth straight session on Wednesday and remains muted as the bullion traders prefer to pump their money into more risky assets such as equities that received a boost from China's new policy measures.
Moreover, the US dollar index climbed 0.28% to 96.11 this session, making dollar-priced gold less attractive for foreign investors. The greenback is expected to remain supported on the back of increasing demand for riskier assets while expectations of a Fed rate hike next week is also likely to bolster the USD.
Meanwhile, nothing of relevance on the macro calendar that may impact gold prices as the US session offers only the US JOLTS jobs openings data.
Gold Technical Levels
The metal has an immediate resistance at 1124.70 (Today’s High) and 1126.02 (10-DMA) levels. Meanwhile, support stands at 1116.72 (50-DMA) below which doors could open for 1110 (Aug 18 Low) levels.
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