Gold trades around hourly 50-MA
|Gold prices are trading dead flat around hourly 50-MA level of $1265/Oz as investors consider the possibility of Fed rate hike in December in the wake of Clinton lead and calm in the financial markets.
Eyes US data
The focus today is on the US data, which is expected to show consumer confidence retreated slightly in Octover. Meanwhile, regional manufacturing indices could influence the pair as well. Howver, both the data sets are unlikely to influence Fed rate hike bets significantly.
Prices have been stuck in a narrow range of $1260-1272 for the past few sessions. Moreover, historical data shows the yellow metal has dropped more often than not in the run up to US elections. This could be the reason for a drop in the buying interest.
Gold Technical Levels
A break above $1274 (Oct 20 high) would expose $1228.80 (May 16 high) beyond which a major resistance is seen at $1303 (May 2 high). On the lower side, breakdown of support at 1260 (10-DMA) could yield a re-test of $1250 (June 24 low). Further losses could run into support at $1241.50 (Oct 7 low).
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