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Gold retreats from 2-week high in Asia

FXStreet (Mumbai) - The yellow metal clings to Friday’s gains at the beginning of the week, although retraced slightly from fresh two-week highs reached at 1088.80 on last Friday.

Gold: Upside capped ahead of $ 1086

Currently, gold trades modestly flat at 1084.30, retreating from session highs scored at 1086.10. Gold eased-off highs and erased gains mainly driven by renewed strength seen in the US dollar after the US president Obama’s speech on terrorism in last hours boosted investors’ sentiment. The USD index now gains 0.18% to trade at session highs of 98.46.

Gold prices also surrendered gains as the risk-on rally witnessed in the Asian equities curbs the demand for the bullion as a safe-haven. Also, Friday’s impressive jobs data reinforced Dec Fed rate hike beliefs and thus, stalling a corrective bounce in gold.

Meanwhile, this week’s holds nothing significant in terms of economic news apart from US retail sales and consumer sentiment figures. Hence, the focus is likely to remain on the USD moves as the countdown to the Fed Dec 16 meeting begins.

Gold Technical Levels

The metal has an immediate resistance at 1088.80 (Dec 4 High) and 1092.40 (Nov 16 High). Meanwhile, the major support stands at 1080 (round number), below which doors could open for 1076.05 (1h 20-SMA).

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