Back
6 May 2015
Gold consolidates below $1200 in Asia
FXStreet (Mumbai) - Gold prices on Comex extends its upbeat momentum for the third straight session largely on softer Asian equities while continued weakness in the greenback also boosted the gold bulls.
Gold hovers near session highs
Currently, gold trades 0.17% higher at 1195.20 levels, hovering close to fresh session highs reached at 1196.10. Gold defended gains as most Asia markets traded down on Wednesday, with Australia seeing the largest losses in the region as banking stocks plunged after yesterday's RBA rate cut. Lower equities raise gold’s attractiveness as an alternative higher yielding asset.
Moreover, persistent US dollar following mixed services PMI reports from the US drives the demand for gold pushing its prices higher.
Meanwhile, markets will be closely watching US economic data due this week, including the nonfarm payrolls report for April due on Friday. Soft data could prompt the Fed to delay a rate rise and boost non-interest-paying gold.
Gold Technical Levels
The metal has an immediate resistance at 1200 and 1207 levels. Meanwhile, support stands at 1192 below which doors could open for 1188 levels.
Gold hovers near session highs
Currently, gold trades 0.17% higher at 1195.20 levels, hovering close to fresh session highs reached at 1196.10. Gold defended gains as most Asia markets traded down on Wednesday, with Australia seeing the largest losses in the region as banking stocks plunged after yesterday's RBA rate cut. Lower equities raise gold’s attractiveness as an alternative higher yielding asset.
Moreover, persistent US dollar following mixed services PMI reports from the US drives the demand for gold pushing its prices higher.
Meanwhile, markets will be closely watching US economic data due this week, including the nonfarm payrolls report for April due on Friday. Soft data could prompt the Fed to delay a rate rise and boost non-interest-paying gold.
Gold Technical Levels
The metal has an immediate resistance at 1200 and 1207 levels. Meanwhile, support stands at 1192 below which doors could open for 1188 levels.