Gold prices
hit fresh session lows, but quickly recovered pointing to relative resilience in
the hard currency despite the strong US ISM non-manufacturing data.
Hovers around USD 1116/Oz
The USD extended gains
across the board after the US
ISM non-manufacturing number printed at the second highest in a
decade. The employment sub index also printed at the second-highest since August
2005.
The data pushed the two-year treasury yield, which mimics the rate
hike bets, higher by almost two basis points. Moreover, the upbeat services data
overshadowed the weak ISM manufacturing released on Monday and a not so
impressive US
ADP report released today.
The USD index extended gains to
98.00 levels, despite which the metal has quickly recovered from the lows.
Gold Technical Levels
The immediate resistance
is seen at USD 1118.25 (61.8% of Jul-Oct rally), above which the prices could
re-test 1132.25 (50% of Jul-Oct rally). On the lower side, a break below
Tuesday’s low at 1113.60 would expose 1100 levels.
