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No respite for Gold after weak US data

FXStreet (Mumbai) - Gold prices continue to trade near daily lows despite dismal US data as traders remain focused on fEd rate outlook.

Eyes key fib support

The metal is trading within a touching distance from USD 1120.60/Oz, which is the 61.8% of Jul low to Oct high move. The US factory orders contracted 1% as expected, thereby offering no surprise to the markets.

Consequently, the metal hardly batted an eye.
Ahead in the day, Draghi’s speech could trigger sharp moves in EUR/USD and affect overall demand for the US dollars, thereby affecting the yellow metal accordingly.

Gold Technical Levels

The metal now trades at USD 1122.76/Oz after having a hit a low of USD 1121.62/Oz. The immediate support now stands at 1120.68 (61.8% of Jul low-Oct high), which is followed by a major support at 1111 (Oct 1 low). On the other hand, a recovery above 1126.78 (Aug 13 high) could open doors for a re-test of 1132.90 (Nov 2014 low) and 1138.15 (100-DMA).

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