Gold stuck around $ 1120; awaits clear direction ahead of Fed

By FXStreet FXStreet (Mumbai) – Gold price on Comex prolong its range-trade in to the European session, as the safe-haven remained unperturbed by awful Chinese imports data while rallying European equities also failed to move the bullion.

Gold clings to 5-DMA

Currently, gold trades -0.09% lower at 1120.40, having posted a high at 1121.40 and a low at 1117.80. Gold prices continues to trade around a flat line, despite a broadly weaker US dollar and rallying European stocks, as markets remain cautious amid ongoing speculation about whether the Federal Reserve (Fed) will lift rates next week.

The Fed is meeting next week, with Wall Street predicting a 50% chance for a rate lift-off at the gathering.

Moreover, the gold prices remained unresponsive to the tumbling Chinese imports data as reflected by the China trade balance data released earlier today. Gold is sensitive to news from China, which is one of the major consumers of the commodity.

Meanwhile, nothing of relevance on the macro calendar that may impact gold prices as the US session is expected to be a non-event.

Gold Technical Levels

The metal has an immediate resistance at 1124 (Sept 7 High) and 1127.20 (10-DMA) levels. Meanwhile, support stands at 1117.40 (50-DMA) …read more

Source:: FX Street