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Gold weakens ahead of the US opening

FXStreet (Mumbai) - Gold prices are trading weak after failing to capitalize on the gains witnessed during the Asian session as the US indices futures trade flat with equities at record highs.

Gold declined to USD 1165.50/Oz, down 0.37% for the day after having hit a high of USD 1777.40/Oz levels earlier todays. So far, the metal has been unable to extend the sharp bounce witnessed on Friday post the release of the weaker-than-expected US Non-farm payrolls data. Meanwhile, the S&P futures and the DJIA futures are trading 0.17% and 0.14% higher respectively. Gold is unable to sustain gains despite the US dollar index weakening 0.27% today.

The yellow metal also came under pressure after the official data in China showed price pressures remained flat in October. China’s consumer price index was 1.6% higher from a year earlier in October, unchanged from the previous month and in line with analysts’ expectations. Fall in inflation in the world’s second largest economy is likely to reduce the hedge demand for Gold.

Elsewhere, the yellow metal or XAU/EUR trades 1.17% lower at EUR 934.79/Oz levels. Moreover, the yellow metal is down in EUR terms as the single currency gained strength against the US Dollar post Friday’s jobs data.

Gold (EUR) Technical levels

Gold has an immediate support at 929.5, under which the prices can fall to 925.62. On the flip side, the metal may re-test 945, if the immediate resistance at 939.40 is breached.

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