OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold off highs around $ 1108, awaits NFP

FXStreet (Mumbai) - The recovery seen in the yellow metal lost steam ahead of hourly 50-SMA and the prices retreated subsequently, now reverting to the levels seen in the Asian session as we progress towards the US opening bells.

Gold faces stiff barrier near $ 1109

Currently, gold trades 0.31% higher at 1107.50, retreating from daily highs posted at 1109.70 in Europe. Gold trimmed gains and turned lower as markets remain cautious heading into the highly-influential US jobs report.

Markets believe that the upcoming US NFP data will determine the Fed’s next moves at the Dec meeting. Upbeat figures, i.e, job additions above 180k will trigger a renewed USD rally across the board, as it would mean the Fed Dec rate hike is confirmed.

Meanwhile, the prices remain supported as the yields on the US treasuries remain in the red, thus underpinning the demand for gold as a higher-yielding asset. The 2-year yields on treasury stand at 0.830%, down -1.44% while the benchmark 10-year yields drop -0.56% to 2.232%.

Gold Technical Levels

The metal has an immediate resistance at 1108.68 (1h 50-SMA) and 1113.50 (Sept 10 High). Meanwhile, the major support stands at 1100/1098.20 (Psychological levels/ Sept 11 Low), below which doors could open for 1094 (Aug 11 Low).

Depressed USD/NOK falls below key SMA

Depressed USD/NOK falls below key SMA
Read more Previous

USD/JPY: chances of a visit to 123.33 – Commerzbank

Axel Rudolph, Senior Technical Analyst at Commerzbank, sees the possibility of the pair to reach 123.33 once 121.60/122.04 is cleared...
Read more Next
Start livechat