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Gold extends the sell-off towards $ 1125

FXStreet (Mumbai) - Gold prices remain pressured and trade with sizeable losses for the third straight session on Tuesday as markets remain wary amid Fed 2015 rate hike prospects and the ongoing global sell-off.

Gold at fresh weekly lows

Currently, gold trades -0.40% lower at 1127.20, bouncing-off lows struck at 1125. Gold price trades in the red as a generalized risk-aversion failed to boost the safe-haven demand for the yellow metal.

Moreover, the recent 2015 rate hike talk up by numerous Fed policymakers continues to weigh on the non-interest bearing bullion.

Meanwhile, the USD index tracking the currency's performance against a basket of major peers, trades -0.28% lower at 95.87, having little impact on gold.

Looking ahead, bigger USD moves in the markets can be expected later this week, with Fed Chair Yellen due to speak tomorrow while the crucial NFP will be reported on Friday.

Gold Technical Levels

The metal has an immediate resistance at 1133.40 (Today’s High) and 1138.50 (Sept 21 High) levels. Meanwhile, support stands at 1122.50 (Sept 23 Low) below which doors could open for 1117 levels.

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