Gold futures on Comex meander near the lowest levels seen since Oct 6th on Monday, extending selling-off seen last Friday, as the yellow metal continues to face double whammy from broad based US dollar strength on one hand, while risk-on market profile collaborates to the weakness on the other hand.
Gold: Losing sight of $ 1300 mark?
The yellow metal kicked-off this week on a bearish note, as Japanese election outcome remained the main catalyst driving risk sentiment, with news of Abenomics to continue, pushed the Japanese stocks to fresh two-decade highs and further fuelled bullish moods across the financial markets. Persistent risk-on sentiment added to the weight on the non-interest bearing gold.
Moreover, the 2018 US budget approval on Friday pushed the US rates across the horizon, resulting in renewed broad USD strength, which also triggered a sell-off in the USD sensitive gold. Stronger USD makes the dollar-denominated gold more expensive for the holders in foreign currencies and vice-versa.
Over the last hour, however, gold prices are seen making minor-recovery attempts from two-week lows of $ 1275.70 amid the latest headlines that the US is preparing for nuclear war readiness amid North Korea crisis.
Later today, gold will continue to get influenced by the USD dynamics and risk trends amid a lack of fresh fundamentals due out from the US docket.
Gold: Key Levels
To the downside, support levels might be located at $1,275.70 (2-week low), $1,270 (Oct 4 low) and $1,265. On the upside, immediate resistance is seen at $1,282 followed by $1,291 (Oct 20 high) and the $1,300 (psychological mark).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.