Gold strengthens on risk aversion

By FXStreet FXStreet (Mumbai) – Gold prices advanced on fresh signs of risk aversion in the financial markets, but the gains remain capped due to the Fed rate outlook.

Safe havens on the rise

Gold and other traditional safe havens like the treasury prices and the Japanese Yen are on the rise. Moreover, the drop in the treasury yields amid losses in the equities point to a bout of classic risk aversion.

However, the gains in the metal were capped at a high of USD 1058/Oz levels on prospects of four rate hikes in 2016. Later in the day, the overall market sentiment and Fed’s Lacker comments could influence the metal.

Gold Technical Levels

At USD 1055.20/Oz, the metal faces an immediate resistance is seen at 1062.83 (hourly 50-MA), above which the pair could rise to 1068.55 (hourly 200-MA). On the other hand, a break below 1051.27 (daily low) would expose 1046.18 (Dec 3 low).
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Source:: FX Street