Tuesday, October 6, 2015

Gold eases-off two-week highs in Asia

FXStreet (Mumbai) - After posting fresh two-week highs in the previous session, the gold prices retreated back to the familiar range around 1135 levels as strong gains in global equities dulled the metal’s appeal as a safe-haven.

Gold capped below $ 1140

Currently, gold trades -0.16% lower at 1136.30, retreating slightly from fresh session lows posted at 1134.60 in early Asia. Gold prices edged lower in Asia largely on the back of a minor correction after the yellow metal surged to fresh two week highs at 1141.70 following the worse-than expected US ISM non-manufacturing PMI report (56.9).

Gold prices also lost some shine as the Asian traders favoured the rallying equities for higher return on their capital, pushing the prices away from multi-week highs.

Later in the US session, the focus will remain on the US trade data which may have major impact, while the broader market sentiment will also be closely monitored for further moves on gold.

Gold Technical Levels

The metal has an immediate resistance at 1137.10 (Today’s High) and 1141.20 (Oct 2 High) levels. Meanwhile, support stands at 1127.80 (Sept 18 Low) levels below which doors could open for 1125 levels.
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