Gold recovers to $ 1126, risk-aversion underpins

By FXStreet FXStreet (Mumbai) – Gold prices recover from lows in the mid-European session, as the European stocks remain largely subdued adding to the prevalent negative sentiment and thus offering some respite to the gold bulls.

Gold bounces-off lows near $ 1124

Currently, gold trades -0.50% lower at 1126, extending the recovery from 1123.90 lows struck in last hours. The yellow metal remains pressured amid increased bets for the Fed rate hike this year, as markets ignored the recent global sell-off in equities.

Meanwhile, markets now turn their attention towards a slew of US economic releases due later today, including the consumer confidence and goods trade balance data which influence the USD moves and eventually impact the bullion.

Gold Technical Levels

The metal has an immediate resistance at 1133.40 (Today’s High) and 1138.50 (Sept 21 High) levels. Meanwhile, support stands at 1122.50 (Sept 23 Low) below which doors could open for 1117 levels.
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Source:: FX Street