Gold edges higher in Asia, eyes $ 1170

By FXStreet FXStreet (Mumbai) – The bullion tries to recover lost ground somewhat and inches higher in Asia, although remains within familiar range seen on Thursday.

Gold supported above 200-DMA

Currently, gold trades 0.20% higher at 1168.30, recovering from session lows posted at 1164.40 in early Asian trades. Gold extends its recovery this session as markets cheer the extension of the easy money policy hinted by ECB on Thursday, thus favouring the higher yielding gold.

On Thursday, gold prices remained on the back foot after the ECB dovish remarks spurred a sharp USD rally while the latest Goldman Sachs report cited that the bank expects a Fed rate hike in Dec also capped the upside in the bullion.

The Wall Street bank maintained its 3/6/12-month forecasts for gold at $1,100, $1,050, and $1,000 an ounce respectively.

Looking, gold is likely to get influenced by the upbeat sentiment in the global equities while could turn cautious ahead of next week’s FOMC decision.

Gold Technical Levels

The metal has an immediate resistance at 1174.85 (10-DMA) and 1180.70 (Oct 20 High). Meanwhile, support stands at 1163.50 (Oct 22 Low) below which doors could open for 1160.70 (200-DMA).
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Source:: FX Street