Gold bounces-off $ 1171 as USD recovery loses steam

Gold futures on Comex brought an end to sharp declines witnessed post-European open, and now attempt another run towards four-week highs reached at $ 1179.85.

Gold back below 50-DMA at $ 1177.12

Currently, gold now gains +0.67% to $ 1173.25, recovering from session lows struck at $ 1171 last hour. The bullion regains poise as the US dollar stalled its recovery mode versus its main competitors, while subdued trading activity seen on the European indices also boosts gold’s appeal as an alternative investment asset.

Gold extends its upbeat momentum for the third straight session and hover near fresh monthly tops, largely on the back of a ‘recursive backtracking’ by the Fed, as suggested in the FOMC minutes published yesterday. The Fed could slow its pace of tightening if the Trump’s presidency fails to deliver its pledge to revive the US economic growth.  

Looking ahead, all eyes remain on the US ADP jobs data and ISM services PMI report for fresh take on the greenback-denominated gold.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1179.85 (4-week high) and 1186.70 (Dec 5 high). Meanwhile, the support stands at 1170 (round number) below which doors could open for 1163 (daily low).