Gold price hits fresh session lows after US data

New York (Aug 26)  Gold prices extended losses on Wednesday to hit a fresh session low of USD 1123.20/Oz after the upbeat US durable goods number hit the wires and pushed up the USD index.

Drops below 50-DMA

The metal fell below its 50-DMA currently located at USD 1126.33/Oz levels. The better-than-expected durable goods figure for July restored the risk sentiment and strengthened the USD index. Consequently, the safe haven assets – Gold, Treasuries, CHF and JPY took a hit.

At the moment, the US index futures are pointing to solid gains in the stock markets in the early US session. Hence, Gold bulls have little to cheer, but could remain watchful about the resilience in the stock market rally ahead in the day.

Gold Technical Levels

The immediate support is located at 1120.00, under which the metal could target 1100.00 levels. On the other hand, resistance is seen at 1132.90 (Nov 2014 low) and 1148.50 (July 8 low).

Source: FXstreet