Gold: Bulls rescued by the Italian crisis-led stocks turmoil
- Safe-haven bids for gold return on the risk-off market profile, quarter-end flows.
- Dollar bulls face exhaustion, US core PCE data fail to impress markets.
Gold prices on Comex is on a steady recovery mode heading into the American session, now trying to regain the $ 1190 level, as risk-off remain at full steam amid a sell-off in the European equities.
The declines in the European markets were led by the Italian stocks after the nation’s yields spiked on the ongoing budget crisis. Markets quickly resorted to safety in the traditional safe-haven gold, in turn helping stall the downside near $ 1184.50, daily lows.
However, it remains to be seen if the prices manage to sustain the renewed upside, as the US dollar continues to trade broadly firmer near two-week tops, in the wake of hawkish Fed’s outlook on the interest rates and bullish economic projections.
With the US data out of the way, the focus now remains on the sentiment on the Wall Street for further trading impetus.
Gold Technical Levels
Higher Side Levels: 1201.18 (50-DMA), 1206.90 (Sept 26 high), 1210 (round number).
Lower Side Levels: 1184.50 (daily low), 1180.50 (5-week low), 1174.70 (Aug 17 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.
