Monday, November 16, 2015

Gold rebounds on Paris attack-led flight to safety

FXStreet (Mumbai) - Friday’s terror attack on the French capital helped gold prices recover from multi-year lows reached last week at 1080 levels, on the back of flight to safety.

Gold sees bullish opening gap and follow through

Currently, gold trades 1.06% higher at 1092.40, hovering close to session highs posted at 1093 in early trades. Gold prices received fresh impetus from the multiple terror attacks that crippled Paris on Friday, with investors flocking to safe-havens in times of uncertainties and crisis.

Moreover, soft economic data from the US released on Friday, viz., retail sales and PPI, also supported the recovery in the bullion from multi-year lows. While negative performance on the Wall Street and the Asian equities also boosted gold’s appeal as an alternative higher yielding asset.

Looking ahead, markets will continue to digest the terror news from France while the FOMC minutes this week is expected to remain the main highlight amid a data-thin US calendar.

Gold Technical Levels

The metal has an immediate resistance at 1096.02 (1h 200-SMA) and 1100 (round number). Meanwhile, the major support stands at 1084.32/28 (1h 10 & 20-SMA), below which doors could open for 1080 (Aug Lows).
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