Gold Dives Deeper in Asia as Stocks Rally, US Jobs Eyed

Gold Dives Deeper in Asia as Stocks Rally, US Jobs Eyed

02 Maret 2016 3:18 AM

Gold futures on Comex extend losses for the second day in a row as the positive sentiment around the equities and upbeat US manufacturing data weigh on the safe-haven.

Gold eyes US jobs data

Currently, gold trades -0.35% lower at 1226.50, quickly retreating from fresh session lows struck at 1225.40 last minutes. The bullion continued to lose ground and fell further into the red territory as the risk-on sentiment extended into Asia and drove the Asian equities through the roof, eroding the demand for safety bets such as gold.

The yellow metal also remains pressured after the latest upbeat US manufacturing PMI report added to the recent streak of auspicious US fundamentals, and reinforced Fed rate hike bets in 2016. Gold tends to benefit in a low interest rate regime as it is non-interest bearing investment asset.

Meanwhile, markets will closely monitor the upcoming US employment data for fresh insights on the Fed rate hike outlook, with the most important one being Friday’s payrolls data.

Gold Technical Levels

The metal has an immediate resistance at 1230 (1h 200-SMA) and 1236.70 (daily pivot). Meanwhile, the support stands at 1122.60 (200-DMA) below which doors could open for 1115 (100-DMA).

Gold futures on Comex extend losses for the second day in a row as the positive sentiment around the equities and upbeat US manufacturing data weigh on the safe-haven.

(Market News Provided by FXstreet)