Gold price extends the drop near $ 1130 as risk-on dominates
New York (Oct 5) Gold extends its corrective mode and remains pressured heading into the US opening bells, as the rising demand for riskier assets dulls gold allure as a safety bet.
Gold accelerates losses below 100-DMA
Currently, gold trades -0.48% lower at 1131.10, recovering slightly from fresh session lows struck at 1129.60 some minutes ago. Gold traders continue to shed their holdings as the prevailing risk-sentiment lures them towards riskier assets such as equities, thus triggering renewed sell-off in the prices.
Gold prices extend the correction and trades with heavy losses this session as traders resort to profit-taking on their gold longs after the recent US jobs data backed rally.
Friday's non-farm payrolls report showed US labour market added only 142,000 workers in September, well below expectations of a 201,000 gain. The poor NFP figures led to drop in 2015 Fed rate hike prospects, paving way for further downside risks to the US currency.
Later in the US session, the focus will remain on the US services sector data which may have major impact on the USD moves.
Gold Technical Levels
The metal has an immediate resistance at 1137.90 (Today’s High) and 1141.20 (Oct 2 High) levels. Meanwhile, support stands at 1127.80 (Sept 18 Low) levels below which doors could open for 1125 levels.