OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold: Bearish potential intact, eyes Wednesday’s low

FXStreet (Mumbai) - The offered tone seen around the yellow metal eased slightly in early Europe, although the prices failed to surpass 1071 levels on several occasions earlier on the day.

Gold recovers from 1067.10 levels

Currently, gold drops -0.57% at 1070.20, and struggles to recover beyond 1071.20 levels since mid-Asia. Gold prices remains pressured on the back a stronger US dollar across the board amid increasing odds for a Dec rate hike, after the Fed called in a meeting today in order to decide on whether to hike the discount rates charged to the commercial banks.

The US dollar index rose 0.32% to trade at 99.97, close to the highest levels in seven months. A stronger US currency usually makes the dollar-denominated bullion more expensive in other currencies.

Later this week, a host of US economic data, viz., the durable goods, core PCE and the GDP, will be reported, having major impact on the bullion.

Gold Technical Levels

The metal has an immediate resistance at 1080 (round number) and 1086.60 (Nov 19 High). Meanwhile, the major support stands at 1067.10 (daily low), below which doors could open for 1064 (five-year lows).

US housing: Hole in the plate – RBC CM

Research Team at RBC Capital Markets, notes that the US housing starts missed consensus expectations by -100K (falling to 1060K in October), which is a soft outcome even in the context of a very strong result last month.
Read more Previous

Japan plans to raise minimum wage again in stimulus package

At a meeting of the government's top advisory panel today the Japanese Economics Minister Akira Amari presented the draft of stimulus measures. The draft includes reform measures that analysts believe is the need of the hour to pull the Japanese economy out of recession. The economy slid into technical recession with registering negative GDP growth in the third quarter. Japan slipped into recession for the second time since PM Abe entered office in December 2012. The aggressive easing policy could not produce the desired results thus far forcing the BOJ to push back the time by which it expected to achieve its inflation target. The government will thus have to do more to foster durable growth.
Read more Next
Start livechat