Monday, October 26, 2015

Gold rebounds to $ 1166 in Asia

FXStreet (Mumbai) - The bullion edged higher in Asia, recovering from close to two-week lows, on the back of a sell-off seen in the US dollar against its major competitors.

Gold finds fresh bids above $ 1160 levels

Currently, gold trades 0.26% higher at 1166, retreating from near two-week lows reached at 1162.10 in early Asia. Gold picks up pace and rebounds higher, as the Asian equities turned lower towards their closing hours, supporting further upside in the yellow metal.

Moreover, broad based US dollar weakness after the recent rally also drove the gold prices higher. While bullion traders also cheer China rate cut news, which brings in additional liquidity in markets and therefore boost the alternative investment assets such as gold.

Markets now await Fed decision due later this week for further moves on the bullion. Higher rates could dull the appeal of non-interest-yielding bullion.

Gold Technical Levels

The metal has an immediate resistance at 1170 and 1173.50 (hourly 200-SMA). Meanwhile, support stands at 1162.10 (Today’s Low) below which doors could open for 1160.53 (200-DMA).
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