21 Jul 2015
Gold bears in control, struggling around $ 1100
FXStreet (Mumbai) - Gold prices on Comex sits near fresh five-year lows in Asian trading, extending its prolonged weakness over the past one week as heightened Fed rate-hike talks and reports on China’s gold reserves kept the yellow metal pressured near 1100 levels.
Gold heavy in Asia
Currently, gold trades -0.39% lower at 1102.50, bouncing-off 1097.60 lows. Gold prices keeps its bearish momentum intact as markets digest St. Louis Fed President James Bullard’s comments on Monday that the central bank is likely to raise rates in September which boosted the greenback further, eventually weighing on the bullion.
Moreover, on Monday, gold prices experienced a sell-off shock, plummeting below the 1,100 threshold for the first time since early February 2010 when some stop-loss orders were activated around the 1,130 levels.
Further fuelled the downside was the China's gold reserves announcement on Friday which surprised with a much lower figure than markets had expected.
Markets now await fresh cues from the week ahead as today economic calendar offers little on cards while gold is likely to be influenced by US dollar moves.
Gold Technical Levels
The metal has an immediate resistance at 1105 and 1110 levels. Meanwhile, support stands at 1087 below which doors could open for 1080 levels.
Gold heavy in Asia
Currently, gold trades -0.39% lower at 1102.50, bouncing-off 1097.60 lows. Gold prices keeps its bearish momentum intact as markets digest St. Louis Fed President James Bullard’s comments on Monday that the central bank is likely to raise rates in September which boosted the greenback further, eventually weighing on the bullion.
Moreover, on Monday, gold prices experienced a sell-off shock, plummeting below the 1,100 threshold for the first time since early February 2010 when some stop-loss orders were activated around the 1,130 levels.
Further fuelled the downside was the China's gold reserves announcement on Friday which surprised with a much lower figure than markets had expected.
Markets now await fresh cues from the week ahead as today economic calendar offers little on cards while gold is likely to be influenced by US dollar moves.
Gold Technical Levels
The metal has an immediate resistance at 1105 and 1110 levels. Meanwhile, support stands at 1087 below which doors could open for 1080 levels.