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13 Mar 2015
Gold strives for USD1160
FXStreet (Mumbai) - Gold prices on Comex rebounded sharply in the Asian session, despite a stronger US dollar and rally global equities, mainly driven by short-covering rally after the recent weakness.
Gold holds above USD 1150
Currently, gold trades higher by 0.61 % at 1158.90 levels, bouncing-off highs previously posted at 1160.80. Gold prices rebounded as traders resorted to profit taking on gold shorts after the recent weakness to lowest levels in three months. However, the upside in gold prices may be short-lived as the strength in the USD may keep a check on prices.
Dollar-priced commodities always react negatively when the US currency firms, as it makes them more expensive in other currencies and therefore less attractive to foreign traders.
Moreover, in an evidence of diminishing investors’ confidence in the yellow metal, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.28% to 750.95 tonnes on Thursday - the lowest since late January.
Gold Technical Levels
The metal has an immediate resistance at 1165 and 1170 levels. Meanwhile, support stands at 1153 (Today’s low) levels below which doors could open for 1146.50 (March 11 Low) levels.
Gold holds above USD 1150
Currently, gold trades higher by 0.61 % at 1158.90 levels, bouncing-off highs previously posted at 1160.80. Gold prices rebounded as traders resorted to profit taking on gold shorts after the recent weakness to lowest levels in three months. However, the upside in gold prices may be short-lived as the strength in the USD may keep a check on prices.
Dollar-priced commodities always react negatively when the US currency firms, as it makes them more expensive in other currencies and therefore less attractive to foreign traders.
Moreover, in an evidence of diminishing investors’ confidence in the yellow metal, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.28% to 750.95 tonnes on Thursday - the lowest since late January.
Gold Technical Levels
The metal has an immediate resistance at 1165 and 1170 levels. Meanwhile, support stands at 1153 (Today’s low) levels below which doors could open for 1146.50 (March 11 Low) levels.