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Gold off lows but stays weak

FXStreet (Mumbai) - Gold prices dropped to a fresh session low of USD 1128/Oz levels after hawkish comments from Fed officials before recovering slightly on the back of losses in the equity markets.

Weak stocks offer support

The metal is being supported by the rise in haven demand after the stock markets in the US dipped in early trading. The Dow Jones index currently trades 150 points or 1% lower. Consequently, the metal managed to recover from the daily lows to trade around USD 1132/Oz levels.

The investors could continue to track the sentiment on the Wall Street during the day ahead. Comments from Fed officials and the possible impact on the Fed rate hike could also play a major role in influencing the metal.

Gold Technical Levels

The immediate resistance is located at 1136 (5-DMA), above which gains could be extended to 1149 (50-DMA). On the other side, support is located at 1128 (daily low) and 1117.42 (50-DMA).

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