Gold keeps moving higher

By FXStreet FXStreet (Mumbai) – Gold prices extended gains after dismal US data release and point upwards as investors brace up for a sharp gap down opening in the US stocks.

Gold hit three-day high

Prices hit three-day high of USD 1097.50/Oz before retreating slightly to trade around USD 1095 levels. The metal has jumped more than $20 from the Thursday’s NY session low of USD 1071.

The sharp rise in the result of the flight to safety triggered by a wave of selling in the Asian, European equities. The US index futures too are pointing to sharp losses in the equities ahead. The risk aversion worsened after the US data showed manufacturing recession in the US and weak consumer spending in the festive month of December.

Consequently, the odds of the metal moving to USD 1100/Oz levels are high.

Gold Technical Levels

A break above the immediate resistance of 1101.70 (38.2% of Oct high-Dec low) would open doors for a rally to 1107 (100-DMA). On the other hand, a break below 1080.48 (23.6% of Oct high-Dec low) could push the metal back to 1071.40 (previous day’s low).
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Source:: FX Street