Gold fades a spike to $ 1097

By FXStreet FXStreet (Mumbai) – The yellow metal halted its recovery mode ahead of hourly 200-SMA and drifted sharply lower towards 1090 levels on the back of renewed rally seen in the greenback across the board.

Gold holds above daily pivot

Currently, gold trades 0.93% higher at 1091.10, retreating from four-day highs reached at 1097.40 in early trades. Gold prices trimmed gains and turned lower towards daily lows as the US dollar strengthened further versus its six major peers in the European session. The USD index rises 0.35% to 99.22.

Moreover, improved risk-sentiment after the European stocks recouped Paris terror-backed losses and turned positive, further weighed on the precious metal.

However, the prices remain supported amid the ongoing uncertainties in the Euro land triggered by Islamic State’s bombings on Paris, which in turn led France to retaliate with air strikes in Syria.

Gold Technical Levels

The metal has an immediate resistance at 1097.40 (daily high) and 1100 (round number). Meanwhile, the major support stands at 1085.02 (1h 50-SMA), below which doors could open for 1080 (Aug Lows).
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Source:: FX Street