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14 Aug 2015
Gold extends declines in Asia, below $ 1115
FXStreet (Mumbai) - Gold futures on Comex extends losses from multi-week top for the second straight session in Asia as impact of China FX intervention waned and traders shifted focus back to Fed Sept rate hike amid upbeat US data releases and falling global demand.
Gold eyes $ 1110
Currently, gold trades -0.22% lower at 1113.20, losing almost $ 2 in early trades. The yellow metal remains continue to remain under pressure as investors' appetite for risk returned on Thursday after assurances from Chinese authorities that their exchange rate reform was completed, reduced the appeal of gold as a safe-haven.
In addition, the latest WGC report citing an 11% drop in worldwide demand for gold led by India (dropping 30% in Q2 y/y) also weighed on the gold prices.
Further, improving economic data from the US fired up the speculation over an interest rates increase by the Fed next month, which also dragged gold lower. The US dollar index, a virtual gauge of greenback’s strength, settled modestly flat at 96.38.
Meanwhile, markets now await today’s China yuan fix announcement due out shortly for further cues on the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1115 and 1120 levels. Meanwhile, support stands at 1110 below which doors could open for 1101 levels.
Gold eyes $ 1110
Currently, gold trades -0.22% lower at 1113.20, losing almost $ 2 in early trades. The yellow metal remains continue to remain under pressure as investors' appetite for risk returned on Thursday after assurances from Chinese authorities that their exchange rate reform was completed, reduced the appeal of gold as a safe-haven.
In addition, the latest WGC report citing an 11% drop in worldwide demand for gold led by India (dropping 30% in Q2 y/y) also weighed on the gold prices.
Further, improving economic data from the US fired up the speculation over an interest rates increase by the Fed next month, which also dragged gold lower. The US dollar index, a virtual gauge of greenback’s strength, settled modestly flat at 96.38.
Meanwhile, markets now await today’s China yuan fix announcement due out shortly for further cues on the precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1115 and 1120 levels. Meanwhile, support stands at 1110 below which doors could open for 1101 levels.