Gold hits fresh 2-month highs at $ 1118 and retreats

By FXStreet FXStreet (Mumbai) – The bulls were unstoppable this Tuesday, driving the gold futures on Comex to fresh twelve-week highs as flight to safety remained the underlying theme.

Gold: Further upside likely ahead of Fed

Currently, gold trades 1% higher at 1116.50, retreating quickly from fresh two-month highs scored at 1118 levels. Gold caught fresh bid tone this session as risk-off trades accelerated after the Chinese benchmark, the Shanghai Composite crashed 6% and oil prices dived deeper in the red on the back of resurfacing global growth concerns.

The yellow metal also remains underpinned as markets are expecting the Fed to turn out more dovish tomorrow and take notice of the recent turbulence across the financial markets.

Markets now await the US data release, including the consumer confidence and flash services PMI, as the main focus remains the FOMC statement due tomorrow.

Gold Technical Levels

The metal has an immediate resistance at 1119.84 (200-DMA) and 1121.90 (Nov 4 High). Meanwhile, the support stands at 1107.70 (Daily low) below which doors could open for 1102.56 (100-DMA)
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Source:: FX Street