Gold price extends side-trend in Europe, near $ 1166

London (Oct 27)  Gold’s gradual ascent from daily lows near 1162 levels lost steam just ahead of the daily pivot, as a broadly muted US dollar and wavering European equities failed to provide further impetus.

Gold hovers above 5-DMA

Currently, gold trades flat at 1165.80, retreating from fresh session highs reached at 1167.10 post-European open. Gold prices remain comatose in tight ranges as markets turn cautious ahead of the Fed decision due tomorrow while China’s policy meeting on the new five-year plan will be closely watched by bullion traders. China is the world’s biggest gold consumer.

Markets now await a slew of US data releases for fresh moves in the gold prices. Markets are expecting core durable goods orders to show a flat reading in Sept versus a -0.2% drop booked in Aug. While the consumer sentiment is expected to deteriorate in Oct to 102.5 against 103.0 recorded in Sept.

Gold Technical Levels  

The metal has an immediate resistance at 1170 (Oct 26 High) and 1172.94 (hourly 200-SMA). Meanwhile, support stands at 1162.40 (Today’s Low) below which doors could open for 1160.51 (200-DMA).

Source: FXstreet