Gold price falls back into losses
London (Sept 11) Gold prices turned lower the high of USD 1111.90/Oz levels to trade with moderate losses despite weakness in the treasury yields and losses in the European equities.
Third consecutive week of losses?
The metal appears poised for a third consecutive weekly loss as the markets had little reason for betting on the Gold’s upside throughout the week. The equity markets swung from gains to losses, while the treasury yields remained largely unchanged.
Moreover, the markets lacked a major fundamental trigger as the US calendar lacked first tier data releases. Consequently, the traders ditched the metal ahead of next week’s FOMC even though the market stands divided over the prospects of a rate hike.
Gold Technical Levels
The immediate support is seen at 1100, under which the metal could drop to 1086 (July 22 low). On the other side, resistance is seen at 1110 (Aug 18 low) and 1123.50 (previous day’s high).