FXStreet (Mumbai) - Gold extends its recent run of losses in Asia and remains near fresh monthly lows reached near 1132.50 levels on Monday on growing expectations that the Fed will hike interest rates this December.
Gold tested daily pivot at 1135.70 & retreats
Currently, gold trades -0.10% lower at 1134.90, recovering from session lows struck near fresh one-month lows of 1132.60. Gold’s recovery mode, although lost steam at the daily pivot and eased slightly as the latest set of upbeat manufacturing PMI reports further fuelled speculations over Dec Fed rate rise and weighed heavily on the non-interest bearing bullion.
The yellow metal also remains largely subdued as the rebounding Asian equities dull its appeal as an alternative higher yielding asset. While markets now look forward to the US factories data due later today for further USD moves.
While markets now await Wednesday’s testimony by the Fed Chair Yellen and Friday’s NFP report, to shed more light on the Fed interest rate outlook.
Gold Technical Levels
The metal has an immediate resistance at 1139.98 (5-DMA) and 1143.06 (50-DMA). Meanwhile, support stands at 1132.60 (Nov 2 Low) below which doors could open for 1131.02 (100-DMA).
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