Tuesday, November 24, 2015

Gold lifted in Asia on USD retreat

FXStreet (Mumbai) - The yellow metal experiences fresh signs of life and recovers from near multi-year lows in Asia, as the US dollar extends its corrective slide after printing three-figures for the first time since April.

Gold hovers around $ 1070

Currently, gold rises 0.29% at 1069.90, having reached fresh session highs of 1071.30 in early trades. Gold prices extend recovery from NY low struck at 1066.40 levels and trade firmer mainly driven by a broadly lower US dollar. The US dollar weakened after softer factories data from the US and also after a non-event Fed decision on the discount rate.

Moreover, negative performance on the global equities on the back of recent commodity sell-off also boosts the demand for gold as a better alternative investment asset.

In the day ahead, a host of US macro data, including the prelim GDP numbers, is likely to have major influence on the USD, eventually impacting gold prices.

Gold Technical Levels

The metal has an immediate resistance at 1074.66 (1h 50-SMA) and 1080 (round number). Meanwhile, the major support stands at 1067.30 (Nov 23 Low), below which doors could open for 1064 (five-year lows).
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