Gold price loses shine in Europe as risk-on returns

Frankfurt (Jan 11)  The yellow metal manages to recover from a dip to low and now regains 1100 threshold amid rising demand for riskier assets and a broadly stronger US dollar.

Gold: Rebound loses steam near 1108

Currently, gold rises 0.29% to 1101.20, recovering from fresh session lows reached at 1098.70 in the last hours. Gold prices retreated from close to nine-week highs and trimmed gains as risk appetite seeped back into markets amid rebounding European equities, which diminished the bids for gold as a safe-haven asset.

Moreover, markets continue to favour the US currency in light of the recent impressive US NFP data, which reinforces bets for further rate increases by the Fed this year. Gold tends to suffer in a higher interest rate environment as the bullion is a non-interest bearing investment asset. Meanwhile, the greenback, gauged by the US dollar index, eases to 98.61 levels from 98.78 highs.

Gold Technical Levels

The metal has an immediate resistance at 1108.30 (daily high) and 1111.10 (Jan 8 High). Meanwhile, the support stands at 1098.70 (daily low) below which doors could open for 1093.59/ 1093 (1h 100-SMA/ Jan 8 Low).

Source: FXstreet