17 Aug 2015
Gold capped below $ 1115 in early Asia
FXStreet (Mumbai) - Gold futures on Comex edges slightly higher in Asia, recovering a small portion of Friday’s losses after the upbeat US PPI and industrial figures bolstered Sept Fed rate hike sending the greenback higher across the board at the expense of the bullion.
Gold faces rejection near $ 1115
Currently, gold trades 0.07% higher at 1113.50, testing lows just ahead of 1113 levels. The yellow metal attempts to recover lost ground in early Asian trades as the latest disappointing Japan’s GDP data added to the concerns global economic recovery while the recent above estimates US macro data fuelled Sept rate hike bets keeps the gains restricted.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades 0.09% higher at 96.69. A stronger US dollar makes dollar-denominated commodities more expensive for holders in foreign currency.
Markets now await today’s China yuan fix announcement due out shortly for further cues on the precious metal. Joining the existing currency war, the PBoC shook the market, boosting gold prices as well, the PBoC's latest moves brought the Fed rate hike timing into question again.
Gold Technical Levels
The metal has an immediate resistance at 1115 and 1120 levels. Meanwhile, support stands at 1110 below which doors could open for 1101 levels.
Gold faces rejection near $ 1115
Currently, gold trades 0.07% higher at 1113.50, testing lows just ahead of 1113 levels. The yellow metal attempts to recover lost ground in early Asian trades as the latest disappointing Japan’s GDP data added to the concerns global economic recovery while the recent above estimates US macro data fuelled Sept rate hike bets keeps the gains restricted.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades 0.09% higher at 96.69. A stronger US dollar makes dollar-denominated commodities more expensive for holders in foreign currency.
Markets now await today’s China yuan fix announcement due out shortly for further cues on the precious metal. Joining the existing currency war, the PBoC shook the market, boosting gold prices as well, the PBoC's latest moves brought the Fed rate hike timing into question again.
Gold Technical Levels
The metal has an immediate resistance at 1115 and 1120 levels. Meanwhile, support stands at 1110 below which doors could open for 1101 levels.