15 Sep 2015
Gold: recovery capped by weak USD index
FXStreet (Mumbai) - Gold prices briefly moved to a high of USD 1108/Oz levels, but moved back to USD 1105/Oz levels as the USD index hit the positive territory after the US advance retail sales report.
Treasury yields rise, Gold stays weak
The advance retail sales report printed lower than expected, still a 0.3% rise was read as a sign of resilience in household spending despite the turmoil in the financial markets in August. Consequently, the Treasury yields were pushed higher, leading to USD strength.
Gold, thus, remained under pressure to trade around USD 1105/Oz levels. Ahead in the day, the sentiment on the Wall Street and US industrial production figures could influence the yellow metal traders.
Gold Technical Levels
The immediate resistance is located at 1113.50 (Sep 10 high), above which gains could be extended to 1123.50 (Sep 9 high). On the other side, support is located at 1102.10 (Sep 9 low) and 1098.20 (Sep 11 low).
Treasury yields rise, Gold stays weak
The advance retail sales report printed lower than expected, still a 0.3% rise was read as a sign of resilience in household spending despite the turmoil in the financial markets in August. Consequently, the Treasury yields were pushed higher, leading to USD strength.
Gold, thus, remained under pressure to trade around USD 1105/Oz levels. Ahead in the day, the sentiment on the Wall Street and US industrial production figures could influence the yellow metal traders.
Gold Technical Levels
The immediate resistance is located at 1113.50 (Sep 10 high), above which gains could be extended to 1123.50 (Sep 9 high). On the other side, support is located at 1102.10 (Sep 9 low) and 1098.20 (Sep 11 low).