Gold: Bearish potential intact, eyes Wednesday’s low

FXStreet (Mumbai) - The offered tone seen around the yellow metal eased slightly in early Europe, although the prices failed to surpass 1071 levels on several occasions earlier on the day.

Gold recovers from 1067.10 levels

Currently, gold drops -0.57% at 1070.20, and struggles to recover beyond 1071.20 levels since mid-Asia. Gold prices remains pressured on the back a stronger US dollar across the board amid increasing odds for a Dec rate hike, after the Fed called in a meeting today in order to decide on whether to hike the discount rates charged to the commercial banks.

The US dollar index rose 0.32% to trade at 99.97, close to the highest levels in seven months. A stronger US currency usually makes the dollar-denominated bullion more expensive in other currencies.

Later this week, a host of US economic data, viz., the durable goods, core PCE and the GDP, will be reported, having major impact on the bullion.

Gold Technical Levels

The metal has an immediate resistance at 1080 (round number) and 1086.60 (Nov 19 High). Meanwhile, the major support stands at 1067.10 (daily low), below which doors could open for 1064 (five-year lows).