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Gold extends weakness below hourly 200-SMA

FXStreet (Mumbai) - Gold prices extend losses for the second straight session and head towards Friday’s low, failing to sustain at higher levels earlier this week.

Gold drops below 1070 barrier

Currently, gold trades -0.50% lower at 1066.40, languishing near fresh session lows struck at 1065.30 some minutes ago. Gold keeps pushing lower and trades with sizeable losses as the USD bulls remain in command with the focus now shifting towards an imminent Fed rate hike next week on Dec 16. The US dollar index gains 0.16% to 98.07 levels.

Next week’s Fed policy verdict is almost certain- the rate futures market is showing about an 85% probability the Fed will hike. However, main focus will be on fresh projections from policymakers, known as the dot plot.
Meanwhile, a batch of macro releases from the US due later today is eagerly awaited after a data-dry trading sessions so far this week.

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Gold Technical Levels

The metal has an immediate resistance at 1069.09 (1h 200-DMA) and 1074.79 (1h 100-SMA). Meanwhile, the support stands at 1060 (round number), below which doors could open for 1058.70 (Dec 4 Low).

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