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Gold hits 4-year low

FXStreet (Mumbai) - Gold fell to a fresh four-year low at the time of writing, extending the losses driven by an upbeat GDP report and the hawkish Federal Reserve policy statement released earlier this week.

Gold is trading more than 2% lower at USD 1167.30/Oz levels. The metal has extended its losses today on the back of a sharp rise in the US Dollar Index, which is trading 0.54% higher at 86.71 levels. Meanwhile, the gains in the equity markets have also pressurized the yellow metal. Moreover, the Fed ended its monthly bond purchase program bringing an end to the ultra loose monetary policy that had pushed Gold prices to a lifetime high of USD 1911 levels in 2011.

Moreover, the yellow metal also feels a lack of hedging demand since the falling energy prices has led to a sharp decline in the price pressures across the globe. The Gold prices are likely to fall further since the US and the European equity futures are pointing to a positive day ahead.

Gold Technical levels

Gold has an immediate support at 1158 (July 2010 low), under which the prices can fall further to 1140 levels. On the flip side, Gold may rise to 1200 levels if it manages to breach the immediate resistance located at 1183.30.

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