Monday, September 21, 2015

Gold treads water near $ 1137, risk-aversion underpins

FXStreet (Mumbai) - Gold price on Comex is seen marginally lower in the Asian session, although keeping range near three-week highs, as the gold bulls are boosting on persisting risk-off sentiment triggered by falling Asian equities.

Gold retreats from 1141.20 – multi-week peak

Currently, gold trades modestly flat at 1137.20, unable to extend beyond 1138.20 levels. Gold prices trade muted amid lack of relevant economic news in the Asian calendar. However, fresh sell-off witnessed across the financial markets added to the negative sentiment, boosting gold’s appeal as a safe-haven.

Moreover, the weakness in the US dollar against its major peers also dragged supports gold in Asia. The US dollar index, the virtual gauge of the greenback’s relative strength, trades -0.10% lower at 92.28, dropping from 95.50 levels seen overnight.

On Friday, gold prices rallied into the third consecutive trading session as the Fed policymakers feared recent global economic and financial developments could restrain otherwise healthy US economic activity, leading investors to flock to bullion.

Gold Technical Levels

The metal has an immediate resistance at 1141.20 (Sept 18 High) and 1144.70 (Sept 1 High) levels. Meanwhile, support stands at 1133.50 (Sept 1 Low) below which doors could open for 1130 levels.
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