Gold stays comatose ahead of September FOMC

By FXStreet FXStreet (Mumbai) – Gold prices are once again going nowhere as investors prefer to stay on the sidelines with FOMC rate decision just one week away.

Consolidates around USD 1120/Oz

The metal has been trading around USD 1120/Oz levels since Friday as the US non-farm payrolls data left the markets divided on the timing of the Fed rate hike. The IMF and the World Bank have fired warning shots regarding the negative impact of the Fed rate hike, while market savvy investors are still betting on a September rate hike. Fed funds futures indicate 30% probability of a rate hike next week.

The divided opinion evaporated the trading interest in the yellow metal, which has remained dead flat amid risk-on rally in the equities. The metal is also not responding to the movement in the USD index.

Gold Technical Levels

The immediate resistance is located at 1127.16 (10-DMA), above which the spot could re-test 1132.90 (Nov 2014 low). On the other side, support is located at 1117.40 (50-DMA) and 1100 levels.
For more information, read our latest forex news. …read more

Source:: FX Street