Gold extends weakness into Asia, below $ 1070

By FXStreet FXStreet (Mumbai) – The yellow metal came under renewed selling pressure in the Asian session, after failing to take out strong resistance near hourly 50-SMA at 1072.50.

Gold eyes multi-year lows

Currently, gold drops -0.29% to 1067, recovering from session lows struck at 1065.70 some minutes ago. Gold prices ran through fresh offers in Asia after the Chinese industrial profits dropped for the fifth consecutive month, refuelling worries over the health of the economy. Profits earned by Chinese industrial companies fell 4.6% y/y in October. China is the world’s top gold consumer.

Moreover, the recent series of upbeat US fundamentals further boosted Dec rate rise bets, which continue to weigh on the non-interest bearing gold. Meanwhile, with US traders off for a Thanksgiving holiday-break until Monday, no major drivers are seen for further momentum on gold.

Gold Technical Levels

The metal has an immediate resistance at 1072.50 (1h 50-SMA) and 1074.49 (1h 200-SMA). Meanwhile, the major support stands at 1064 (five-year lows), below which doors could open for 1060 (psychological levels).
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Source:: FX Street