FXStreet (Mumbai) - The gold bulls are seen trying hard to recover lost ground, and now pushing the yellow metal slightly away from fresh three-month lows reached at $ 1084.80 last Friday.
Gold takes recovery above 1090 levels
Currently, gold trades 0.44 higher at 1092.50, hovering close to session highs posted at 1093 in last hours.
Gold is seen correcting higher after booking heavy losses on Friday, following the release of stronger than expected US non-farm payrolls numbers. The US jobs data surprised markets on the upside and reinforced belief that Fed will raise rates next month. Higher interest rate environment dulls gold’s appeal, which is a non-interest bearing asset.
The US employers added a remarkable 271K jobs in October, way above the 185K payrolls markets had been expecting. The bullion fell sharply to the lowest levels since August near 1085, in a knee-jerk reaction to the jobs data.
The yellow metal remains little affected by the dismal Chinese trade data and extends its corrective mode ahead of China’s CPI figures due on Tuesday. While nothing relevant is likely to be reported from the US calendar today and hence, markets will continue digest the US and China economic data.
Gold Technical Levels
The metal has an immediate resistance at 1093.74 (1h 20-SMA) and 1095.96 (5-DMA). Meanwhile, the major support stands at 1084.80 (Nov 6 Low), below which doors could open for 1080 (Aug Lows).
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