Gold prices on Comex extends its downward trajectory for the third straight session on Wednesday, as the PBOC rate cut appears to have stabilized markets across the board, fuelling the drop in the safe-haven- gold.
Gold drops more than $ 10
Currently, gold trades -0.21% lower at 1135.90, recovering from 1133 lows reached in last hours. The yellow metal was trading with sizeable losses today as markets breathed a sigh of relief after the Shanghai stocks halted its downward spiral responding to the PBOC rate cut and rallied driving the market sentiment along with it.
Moreover, the losses in the bullion were accelerated after the greenback also rebounded sharply reacting to the upbeat sentiment, thereby weighing on the gold prices. The US dollar index, a virtual gauge of greenback’s strength, trades 0.36% higher at 94.24.
Gold Technical Levels
The metal has an immediate resistance at 1145 and 1150 levels. Meanwhile, support stands at 1133 (Today’s Low) below which doors could open for 1128 levels.