Gold drops towards hourly 100-SMA amid risk-on

By FXStreet FXStreet (Mumbai) – Having failed to resist 1100 barrier, the yellow metal extends its weakness into Europe and languishes near session lows

Gold off lows as USD recedes gains

Currently, gold trades -0.16% lower at 1096.20, recovering swiftly from fresh session lows reached at 1095.40 last minutes. Gold prices keep the red as the ongoing recovery in the black gold lifts overall sentiment towards risky assets, thus, diminishing the demand for gold as a safe-haven asset. Investors favour risk assets such as the equities at the expense of the bullion. Germany’s DAX jumps 1.70%, while the Nikkei closed +5.88% higher.

Moreover, the bulls sold off the precious metal after the prices failed to extend beyond 1100 – key psychological levels, while the strengthening US dollar on the back of lower EUR/USD, also keeps the bullion undermined.

Looking ahead, gold will continue to get influenced by the broader market sentiment ahead of the US manufacturing PMI and existing home sales data, which may have some impact on the USD moves.

Gold Technical Levels

The metal has an immediate resistance at 1100 (psychological levels) and 1103.32 (100-DMA). Meanwhile, the support stands at 1091.16/10 (10-DMA/ 1h-200-SMA) below which doors could open for 1087.40 (20-DMA).
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Source:: FX Street