Gold sustains above USD 1100/Oz

FXStreet (Mumbai) – Gold prices suffered an onslaught from the bears, but managed to stay above USD 1100/Oz levels in the Asian session today.

Gold under pressure ahead of Fed

The metal failed to respond to the drop in the US stocks and dropped to near USD 1100 levels. The metal traders remain focused on the rate hike bets ahead of the next week’s FOMC rate decision. At the moment, the Fed fund futures are indicating a 30% probability of a rate hike in September. Moreover, the last week’s NFP left markets divided on the rate hike timing.

With no major data due today, the metal could remain on a back foot as stability in the equity markets raises the probability of a rate hike in the US.

Gold Technical Levels

The immediate support is seen at 1100, under which the metal could drop to 1086 (July 22 low). On the other side, resistance is seen at 1110 (Aug 18 low) and 1123.50 (previous day’s high).

Gold prices suffered an onslaught from the bears, but managed to stay above USD 1100/Oz levels in the Asian session today.

(Market News Provided by FXstreet)