FXStreet (Mumbai) – Gold price on Comex paused its losing streak and staged a mild recovery in the European afternoon, as falling European indices coupled with broad USD weakness continues to underpin the yellow metal’s prices.
Gold trims early gains
Currently, gold trades 0.27% higher at 1125.50, having posted a high at 1132.30 and a low at 1123.70. Gold prices rebounded this session mainly on the back of broad based US dollar weakness as traders booked profits on their USD longs after the recent upbeat US data-backed rally. The US dollar index, a virtual gauge of greenback’s relative strength, trades -0.20% lower at 95.55.
Further adding to the upside in gold prices, stocks in the Europe fell in the red ditching the stronger performances experienced by their Asian counterparts which boosted the demand for alternative higher yielding asset – gold.
However, the gains remain capped as markets anticipate another round of above estimates US data releases later in the session which may boost the greenback at the expense of the bullion.
The New York session offers Fed’s favorite inflation gauge, the core PCE price index while US goods trade balance, personal spending and revised consumer sentiment will also be on the cards.
Gold Technical Levels
The metal has an immediate resistance at 1130 and 1134.30 (Aug 18 High) levels. Meanwhile, support stands at 1123.70 (Today’s Low) below which doors could open for 1116.90 (Aug 26 Low) levels.
Gold price on Comex paused its losing streak and staged a mild recovery in the European afternoon, as falling European indices coupled with broad USD weakness continues to underpin the yellow metal’s prices.
(Market News Provided by FXstreet)