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Gold recovers as US stocks waver

FXStreet (Mumbai) - Gold prices recovered losses to trade moderately positive on haven demand in the NY session as US stocks swing between gains and losses.

Risk-off in the US

The early losses in the US equities indicated the risk averse mood remains intact. The European stock markets too are erasing gains, tracking the nervous mood on the Wall Street. Consequently, the traditional safe haven assets like Gold, Treasuries, JPY are on the rise.

The metal was offered heavily since Monday’s Asian session after Fed’s Yellen talked up rate hike bets last Thursday. However, markets seem unconvinced that a rate hike could indeed happen this year.

Meanwhile, the uptick in the September consumer confidence (actual 103.00, expected 96.1) has failed to have a sizeable impact on the metal. Heading into the NY closing, the metal traders are likely to track the movement in the US stock markets.

Gold Technical Levels

The metal currently trades around USD 1133/Oz. The immediate resistance is seen at 1141.73 (Sep 18 high), above which the metal could target 1148.35 (100-DMA). On the other side, support is seen at 1127.93 (previous day’s low) and 1124.20 (daily low).

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