Gold rises for 2nd day amid stock markets turmoil

By FXStreet FXStreet (Mumbai) – Gold prices extend gain for the second straight session as a classic flight to safety theme prevails in Asia, after the equities track the oil price decline.

Gold finds strong resistance above 1095 levels

Currently, gold trades marginally higher at 1093, retreating from fresh session highs printed at 1095.30 pre-Tokyo open. The negative sentiment around the global stocks, with the Asian indices tumbling to multi-month lows on the back of the ongoing weakness in oil prices, rattles investors’ confidence and hence, boosts the demand for traditional safe-havens such as gold.

Moreover, the overnight slide in the US dollar against its six major rival also kept the yellow metal underpinned. The greenback, gauged by the US dollar index trades muted around 98.90 levels.

Adding to the positive sentiment around gold, Fed officials raised concerns over the Chinese slowdown concerns, which could negatively affect the US economic outlook.

Later today, the sentiment on the global equities will continue to dominate ahead of the US datasets, including the weekly unemployment claims and import prices index.

Gold Technical Levels

The metal has an immediate resistance at 1095.20/30 (daily & Jan 13 High) and 1098.50 (Jan 12 High). Meanwhile, the support stands at 1088.25/19 (1h 20 …read more

Source:: FX Street