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Gold drops after ADP report, Fed Dec rate hike bets unchanged

FXStreet (Mumbai) - Gold prices fell to a session low of USD 1058.73/Oz levels after a stellar US ADP release, although the CME Dec fed rate hike bets remained largely unchanged around 75%.

Rejected at 10-DMA

The metal was offered at the 10-DMA at USD 1070 earlier today. The US ADP printed way above estimates and led to broad based USD strength. Consequently, the metal fell to a low of USD 1058.73/Oz.

However, the probability of the 25bps point hike at the December meeting stayed unaffected at 75%. So it remains to be seen if the USD rally and the weakness in the Gold remains intact till the NY closing.

Gold Technical Levels

The immediate support is seen at 1052.80 (Nov 27 low), under which the prices could drop to 1032.30 (Mar 2008 high). On the other side, resistance is seen at 1065.67 (hourly 100-MA) and 1070 (10-DMA+hourly 200-MA).

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