Friday, October 16, 2015

Gold retreats from multi-month highs in Asia

FXStreet (Mumbai) - The yellow metal eased in Asia and trades in the red, having failed once again near 1190 levels after the impressive US CPI figures provided the much-needed impetus to the greenback.

Gold fails to resist 1180 levels

Currently, gold trades 0.69% lower at 1179.30, hovering close to session lows struck at 1177.90. Gold traders resorted to profit-taking after the bullion failed to surpass the 1190 barrier on two back-to-back sessions while heading for the fifth consecutive weekly gains.

Gold prices trade in the negative territory this session as the greenback continues to ride higher backed by surprisingly positive US inflation data and solid jobless claims numbers. The USD index trades 0.05% higher at 94.50.

Moreover, the risk-on rally in the Asian stocks also dulls gold’s allure as a safe-haven asset, thus exerting additional pressure on the yellow metal.
Meanwhile, markets now shift their focus towards the US consumer sentiment and industrial production figures due later in the session for further USD moves.

Gold Technical Levels

The metal has an immediate resistance at 1190/1191.40 (round number & Oct 15 High) and 1200 (round figure). Meanwhile, support stands at 1174.50 (Oct 15 Low) below which doors could open for 1170.87 (hourly 100-SMA).
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