FXStreet (Mumbai) - Gold prices halted the ongoing downward spiral and recovered from more than three-week lows struck during the opening trades and now hovers near daily highs.
Gold extends recovery from 1133.80
Currently, gold trades 0.10% lower at 1140.30, erasing most of the heavy losses seen in early trades after the bullion dropped to fresh three-week lows at 1133.80. Gold manages to recover lost ground somewhat mainly due to the rising demand for safe-haven assets after the latest Chinese PMI report failed to impress markets and fuelled a renewed risk-aversion wave.
Hence, investors gave up their positions on the Asian indices and flocked to the yellow metal, thus, lending a helping hand to the recovery in gold. However, the recovery may remain short-lived as markets continue to boost speculations surrounding Dec Fed rate hike bets, weighing heavily on the non-interest bearing bullion.
Meanwhile, the week ahead has a lot in store for the gold traders, with the Fed Chair Yellen’s testimony on Wednesday and Friday’s NFP to hog the limelight. As for today’s trade, the manufacturing PMI reports from the ISM will direct further USD moves.
Gold Technical Levels
The metal has an immediate resistance at 1142.84 (50-DMA) and 1149.22 (5-DMA). Meanwhile, support stands at 1133.80 (Today’s Low) below which doors could open for 1131.30 (100-DMA).
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