Gold hit two-week lows in US session

By FXStreet FXStreet (Mumbai) – Gold prices hit a two-week low of USD 1057.67 levels as the USD demand refuses to fade despite the weaker-than-expected US data release.

USD strength intact

The Phily Fed manufacturing figure printed at -5.9; which is well below the estimate of 1.5. However, the USD strength remained intact as the initial jobless claims fell more than expected to 271K. The data highlighted the labor market strength and kept the bid tone on the USD intact.

Consequently, the yellow metal extended the drop to hit a two-week low. Heading into the NY session, the metal could continue to track the USD index.

Gold Technical Levels

The immediate resistance is seen at 1066.50 (hourly 100-MA), above which the gains could be extended to 1080.48 (23.6% of Oct high- Dec low). A break below 1050.50 (Dec 2 low) would open doors for a re-test of 1046.18 (previous day’s low).
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Source:: FX Street