Gold eases-off 2-month highs on China demand concerns

By FXStreet FXStreet (Mumbai) – Having printed fresh two-month highs near 1102 levels earlier on the day, the yellow metal retreated in the European session, although remains on the bids on global stocks slump.

Gold holds above 1090 levels

Currently, gold rises 0.18% to 1093.90, recovering from fresh session lows struck at 1092.20 in the last hours. Gold prices drifts lower on the back of rising concerns over the Chinese demand for the bullion, after the local stock markets turmoil refuelled slowdown concerns in the world’s largest gold consumer.

Moreover, a solid comeback staged by the US dollar against its major competitors also capped the gains in the gold prices. The US dollar index now trades 0.07% higher at 99.33, recovering from a dip to 99 handle.

However, the prices remain supported on the back of the free-fall seen in the European stocks, after the European indices joined the global sell-off.

Gold Technical Levels

The metal has an immediate resistance at 1102.50 (Daily High) and 1109.50 (Nov 6 High). Meanwhile, the support stands at 1091.10 (Daily Low), below which doors could open for 1084.36 (Daily S3).
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Source:: FX Street