Thursday, November 5, 2015

Gold suffered six –day losing streak, What next?

FXStreet (Mumbai) - Gold prices fell for the sixth consecutive session on Wednesday as the upbeat US economic data and hawkish comments from Yellen pushed up rate hike bets and strengthened US dollar.

December rate hike probability above 50%

A 25-bps rate hike probability as indicated by the Fed funds futures currently stands around 55%. The US ISM non-manufacturing showed a sharp rise in the employment index. Meanwhile, Fed’s Yellen reiterated a possibility of a rate hike in December.

The odds of a next move being bearish are high as markets believe the Fed has made up its mind to raise rates in December. Meanwhile, Friday’s non-farm payrolls may add to the evidence of labor market strength and further penalize gold.

Gold Technical Levels

At USD 1108/Oz, the immediate support is seen at 1106.41 (previous day’s low), which is followed by a psychological support at 1100. On the other side, resistance stands at 1114.41 (Tuesday’s low) and 1120.60 (61.8% of July low-Oct high).
For more information, read our latest forex news.

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