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Gold is the weakest safe haven today

FXStreet (Mumbai) - Gold, a traditional safe haven asset, is the weakest today, despite the china-led risk-off in the European equities and US equity index futures.

Gold ignores risk-off and weak USD index

The metal currently trades 0.25% lower at USD 1073/Oz levels even though the USD index is down 0.27% at 98.47. The treasury yields have weakened as well. Meanwhile, other safe haven assets/currencies like the JPY and CHF are up 0.4% and 0.7% respectively against the US dollar. Funding currency EUR also advanced 0.50% against the USD.

Despite the classic risk aversion signs in the markets, the traditional safe haven asset is under pressure, which could be due to strong expectations of a Fed rate hike next week.

Gold Technical Levels

The immediate resistance is located at 1078.13 (hourly 50-MA), above which the gains could be extended to 1088.85 (Dec 4 high). On the other hand, a break below 1068 (hourly 100-MA + 10-DMA), would expose 1063.27 (Nov 18 low).

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