Gold regains $ 1070 in thin trade

Dhwani Mehta FXStreet

FXStreet (Mumbai) - Gold prices extend the recovery from a brief drop to 1066 NY low and swing back above 1070 barrier, mirroring the pullback seen across the commodities.

Gold tested hourly 100-SMA near $ 1073

Currently, gold rises 0.30% to 1071.50, easing-off session highs printed at 1072.90, where the hourly 100-SMA intersects. Gold keeps its recovery mode intact this session, despite rebounding Asian equities, as markets preferred to lock-in gains on their gold shorts ahead of first batch US economic data to be published later today amid a light trading week.

The yellow metal kicked-off the final week of 2015 on a bearish note and joined the global commodities sell-off fuelled by sharp losses in crude oil prices.

Meanwhile, the recovery in the bullion may remain short-lived as illiquid markets are likely to keep gold under pressure, as many traders are off on a Christmas - New Year's Day holiday break.

Gold Technical Levels

The metal has an immediate resistance at 1078.08 (50-DMA) and 1081.50 (Dec 21 High). Meanwhile, the support stands at 1065.90 (Dec 28 Low), below which doors could open for 1061.50 (Dec 16 Low).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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