20 Jan 2016
Gold heads towards $ 1100 amid global market turmoil
FXStreet (Mumbai) - Having bottomed near 1086 region in early Asia, the yellow metal extends its recovery mode into Europe and now climbs further towards 1100 barrier on increased demand for safety assets.
Gold rises nearly $ 10
Currently, gold trades 0.65 higher near fresh session highs reached at 1096.80 last minutes. Gold prices extend higher this session, underpinned by renewed sell-off in oil prices, which triggered a generalized risk-off market profile, with investors seeking for safe-havens such as gold to protect their funds in times of market turmoil. Oil prices plummeted to new 12-year lows while the Asian and European indices hover at multi-year troughs.
Moreover, intensifying global growth concerns, especially after the International Monetary Fund (IMF) cut its global growth forecasts for the third time in less than a year, also boosted the safe-haven bids for the precious metals.
Looking ahead, the US CPI report due out in the NY session remains the next risk event for the yellow metal, having major impact on the prices. The latest CPI figures are expected to be closely watched as they could tell more about the possibility of rate hikes in the months to come.
Gold Technical Levels
The metal has an immediate resistance at 1100 (psychological levels) and 1104.22 (100-DMA). Meanwhile, the support stands at 1090.84/41 (5 & 10-DMA) below which doors could open for 1084.90/28 (Jan 19 Low/ 20-DMA).
Gold rises nearly $ 10
Currently, gold trades 0.65 higher near fresh session highs reached at 1096.80 last minutes. Gold prices extend higher this session, underpinned by renewed sell-off in oil prices, which triggered a generalized risk-off market profile, with investors seeking for safe-havens such as gold to protect their funds in times of market turmoil. Oil prices plummeted to new 12-year lows while the Asian and European indices hover at multi-year troughs.
Moreover, intensifying global growth concerns, especially after the International Monetary Fund (IMF) cut its global growth forecasts for the third time in less than a year, also boosted the safe-haven bids for the precious metals.
Looking ahead, the US CPI report due out in the NY session remains the next risk event for the yellow metal, having major impact on the prices. The latest CPI figures are expected to be closely watched as they could tell more about the possibility of rate hikes in the months to come.
Gold Technical Levels
The metal has an immediate resistance at 1100 (psychological levels) and 1104.22 (100-DMA). Meanwhile, the support stands at 1090.84/41 (5 & 10-DMA) below which doors could open for 1084.90/28 (Jan 19 Low/ 20-DMA).