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Gold languishes near two-week lows

FXStreet (Mumbai) - Gold extends the rout for the fifth straight session on Thursday as the stabilizing global equities and upbeat US fundamentals continue to dull the safe-haven appeal of the bullion.

Gold recovers slightly from $ 1110.40 lows

Currently, gold trades -0.21% lower at 1113, having tested $ 1110 threshold. The yellow metal remains under tremendous pressure as possibilities of the Fed rate-hike this year keep growing amid strengthening US labour market.

The US ADP non-farm employment change report released on Wednesday showed the employers in the private sector added 200,000 jobs in September, coming in above the market forecasts for a 190,000 increase.

Moreover, strong performance on the global equities in the last two days further diminished the bids for the safe-haven while boosting the US dollar.

Looking ahead, focus now shifts towards the much awaited US payrolls data due on Friday for further moves on the gold. While a batch of US data due later today will be also closely monitored.

Gold Technical Levels

The metal has an immediate resistance at 1115.70 (Today’s High) and 1119.90 (Sept 16 High) levels. Meanwhile, support stands at 1110 levels below which doors could open for 1104 levels.

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