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Gold turns positive as Fed rate hike bets drop

FXStreet (Mumbai) - Gold prices turned positive in the US session as the probability of the December Fed rate hike is now almost negligible.

Gold up 0.20%

The metal turned higher from the low of USD 1129.60 seen earlier today to trade around USD 1140/Oz levels; up 0.23% on the day. Prices spiked more than 2% on Friday after the horrible non-farm payrolls report in the US reduced the probability of a the December Fed rate hike.

Heading into the report, the CME Fed watch figures had the December probability at 35.50%. Following the NP report, the probability dropped to 28.50%. The October probability now stands at a mere 6.9%.

Consequently, the metal strengthened, but the gains remain capped due to the risk-on rally in the equity markets across the globe.

Gold Technical Levels

Above 1140.00, the metal could rise to 1145.56 (78.6% of 1156.70-1104.66). On the other side, support is seen at 1134.51 (daily low) and 1130.68 (50% of 1156.70-1104.66).

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